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principal office as above.
Pocket Guide to
IFRS Standards: the global
financial reporting language
2016
Paul Pacter
IFRS Foundation
30 Cannon Street
London EC4M 6XH
United Kingdom
Contents
IFRS by numbers
93%
83%
page
Use of IFRS Standardsthe Big Picture from 143 profiles
Foreword 7
Purpose of this guide
$46 trillion
The vision
56%
In less than seven years since its publication, the IFRS for SMEs
Standard is required or permitted in 56 per cent (80/143) of profiled
jurisdictions while a further 11 jurisdictions are considering doing so.
National standards
(including those moving
towards IFRS Standards): 10
IFRS Standards
required for financial
institutions: 2
IFRS Standards
required for all/most
companies: 119
IFRS Standards
permitted
for all/most
companies: 12
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11
14
15
16
20
22
23
24
26
27
28
31172
174
204
IFRS quiz
205
206
Contact us
207
The author
208
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This last year has seen continued progress towards the G20-endorsed
mission of global accounting standards.
Europe
43
42
98%
Africa
20
16
80%
Middle East
12
11
92%
Asia-Oceania
31
23
74%
Americas
37
27
73%
Totals
143
119
83%
14
10
100%
83%
10%
7%
As % of 143
Foreword
First, we have seen a number of countries around the world take further
steps towards IFRS Standards. That progress has been most notable
among the large Asian economies.
In Japan, IFRS Standards have been optional since 2010. Currently,
over 100 Japanese companies (25 per cent of the total market
capitalisation) have adopted IFRS Standards or are planning to adopt.
Close to 200 more companies are seriously considering the adoption
of IFRS Standards. By comparison, in December 2012 only 10 Japanese
companies were using our Standards.
India has recently adopted new accounting standards, known as Ind
AS, that are substantially converged with IFRS Standards. Most of the
Ind AS are word-for-word IFRS Standards. A few limited differences
remain, so we have not yet classified India as an IFRS adopter. However,
giving credit where credit is due, these new Indian standards are very
close to IFRS Standards and will provide investors with much better
information.
China decided ten years ago to converge with IFRS Standards, with
the terms of that work set out in the 2005 Beijing Agreement. A 2015
update to that Agreement reaffirms Chinas commitment to achieve
full convergence with IFRS Standards, while many of Chinas largest
companies already report using IFRS for the purpose of their listings in
Hong Kong.
Second, our research continues to report an ever-growing number of
jurisdictions requiring the use of IFRS Standards. Of the 143 jurisdictions
researched thus far, 119 (83per cent) require the use of IFRS Standards by
all or most publicly listed companies. Moreover, most of the remaining
jurisdictions either permit its use or are well advanced in embracing
IFRS Standards.
Third, we have seen very positive evaluations about our Standards from
existing IFRS jurisdictions. During 2015, the European Commission
published a report evaluating the European Unions experience of using
IFRS Standards over the past ten years. The key findings showed that IFRS
Standards were successful in creating a common accounting language for
capital markets. Companies were mostly positive about their experience
of using IFRS Standards and in most cases, benefits outweighed costs.
Investors also largely supported IFRS Standards for improving the
transparency and comparability of financial statements.
These are all very positive developments, and reaffirm our strong belief in
our mission. This Pocket Guide tells a remarkable story that exceeds even
our own estimates about the extent and consistency of adoption of IFRS
Standards.
Hans Hoogervorst
Chairman, International Accounting Standards Board
May 2016
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The vision
The guide includes summaries of the use of IFRS Standards in those 143
jurisdictions. The summaries provide a comprehensive picture of exactly
where and how IFRS Standards are used globally. Detailed information
underlying the summaries may be found on the IFRS Foundations
website: www.ifrs.org.
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rustees of the IFRS Foundation. Report of the Trustees Strategy Review 2011
IFRSs as the Global Standards: Setting a Strategy for the Foundations Second Decade.
February 2012.
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Standards as of
April 2016
Year of original
issue or major
amendment
The Conceptual Framework for Financial Reporting
IAS 1
IAS 2
IAS 7
IAS 8
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2010
IAS 10
IAS 11
IAS 12
IAS 16
IAS 17
IAS 18
IAS 19
IAS 20
2003
2004
2004
2004
2004
2006
2005
2006
2014
2011
2011
2011
2011
2014
2014
2016
2003
2003
1992
2003
Construction Contracts*
Income Taxes
Property, Plant and Equipment
Leases**
Revenue*
Employee Benefits
Accounting for Government Grants and
Disclosure of Government Assistance
1993
1996
2003
2003
1993
2004
2008
2003
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Standards as of
April 2016 continued...
Year of original
issue or major
amendment
IAS 21
IAS 23
IAS 24
IAS 26
IAS 27
IAS 28
IAS 29
IAS 32
IAS 33
IAS 34
IAS 36
IAS 37
IAS 38
IAS 39
IAS 40
IAS 41
2003
2007
2003
1987
IFRIC 10
IFRIC 12
IFRIC 13
IFRIC 14
2003
2011
2008
IFRIC 15
IFRIC 2
IFRIC 4
IFRIC 5
IFRIC 6
IFRIC 7
2006
2006
2007
2007
2008
IFRIC 19
2009
IFRIC 20
2011
IFRIC 16
2003
2003
1998
2004
1998
IFRIC 17
IFRIC 18
2004
2003
IFRIC 21
SIC-7
SIC-10
2003
2008
Interpretations
IFRIC 1
Year of original
issue or major
amendment
SIC-15
SIC-25
2004
SIC-27
2004
SIC-29
SIC-31
2004
2004
2005
SIC-32
2008
2008
2009
2013
1998
1998
1999
2000
2000
2001
2001
2001
2015
2005
* S
uperseded by IFRS 15.
** S
uperseded by IFRS 16.
*** Superseded by IFRS 9.
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The IFRS Foundation and the Board The Board completes deliberations
publish new Mission Statement.
on new leases Standard.
IFRS Foundation Trustees
launch a review of the structure
and effectiveness of the IFRS
Foundation.
2012
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2010
2009
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2004
2003
2007
2006
2002
2001
2005
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Accounting Standards
Advisory Forum
IFRS Advisory
Council
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Public accountability
Agenda consultation
Research programme
Research
Discussion Paper
Agenda proposal
IFRS Foundation
International Accounting
Standards Board
Independent standard-setting
and related activities
Standards development
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Implementation
Exposure Draft
Final IFRS Standard
Interpretation or narrowscope
amendment
Post-implementation Review
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Agenda consultation
The Board conducts a comprehensive review of its technical agenda
every three years, although, of course, it stands ready to address urgent
issues rapidly if the need arises. On the basis of public input received
during the triennial agenda consultation, the Board develops a three- to
fiveyear agenda of projects. Apart from the reviews, the Board and/or
the Interpretations Committee evaluate all requests received for possible
interpretation or amendment of a Standard.
Research programme
Once a project has been identified as a candidate for a possible Standard,
the staff undertake a programme of research aimed at gathering evidence
to define the problem and identify whether there is a financial reporting
matter that justifies an effort by the Board. The evidencegathering
includes (for major projects) soliciting public input via a Discussion Paper
or similar document. National accounting standardsetters are invited
to help in the research effort. The research programme leads either to a
project proposal or to a recommendation not to develop a Standard.
Standards programme
If the Board decides to develop a Standard, it reviews the results of the
research, including the comments received on the Discussion Paper,
and develops proposed solutions to the issues that were identified. To
assist in developing the proposed solutions, the Board often appoints a
working group of experts on the issue. It also consults with the Advisory
Council and the ASAF. The Board publishes its proposals in the form of
an Exposure Draft. Public comments are invited. To gather additional
evidence, Board members and staff undertake worldwide outreach by
various means, including round-table meetings and webcasts, with
special efforts to obtain the views of users of financial statements.
The culmination of the standards programme is the issue of a new or
amended Standard.
Implementation
The Board monitors the implementation of new or amended Standards
to identify any implementation problems that may need to be addressed
by an Interpretation or a narrow-scope amendment to the Standard.
The IFRS Interpretations Committee takes the lead in developing the
Interpretations or amendments for final clearance by the Board. Public
comments are invited. Once a new Standard or major amendment has
been in place for several years, the Board conducts a Post-implementation
Review to assess whether the Standard is achieving its objective and, if
not, what amendments should be considered.
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Gary Kabureck
Former Chief Accounting Officer
and Corporate VicePresident, Xerox
Corporation, (United States)
Appointed: 15 April 2013
Term expires: 30 June 2017
Suzanne Lloyd
Former Senior Director Technical
Activities, IASB, (New Zealand)
Appointed: 1 January 2014
Term expires: 31 December 2018
Stephen Cooper
Former Managing Director and Head
of Valuation and Accounting Research,
UBS, (United Kingdom)
Appointed: 1 August 2007
Second term expires: 31 July 2017
Philippe Danjou
Former Director of the Accounting
Division, Autorit des Marchs
Financiers (AMF), the French securities
regulator, (France)
Appointed: 1 July 2006
Second term expires: 31 October 2016
Amaro Luiz de Oliveira Gomes
Former Head of Financial System
Regulation Department, Central Bank
of Brazil, (Brazil)
Appointed: 1 July 2009
Second Term expires: 30 June 2019
Martin Edelmann
Former Head of Group Reporting,
Deutsche Bank,
(Germany)
Appointed: 1 July 2012
Term expires: 30 June 2017
Patrick Finnegan
Former Director, Financial Reporting
Policy Group, CFA Institute Center
for Financial Market Integrity,
(UnitedStates)
Appointed: 1 July 2009
Stepping down: 30 June 2016
Darrel Scott
Former CFO, FirstRand Banking
Group, (South Africa)
Appointed: 1 October 2010
Second Term expires: 30 June 2018
Chungwoo Suh
Former Chairman, Korea Accounting
Standards Board; Professor of
Accounting at Kookmin University,
Seoul, (Korea)
Appointed: 1 July 2012
Term expires: 30 June 2017
Mary Tokar
Former leader, International Financial
Reporting Group, KPMG; former
Senior Associate Chief Accountant,
Securities and Exchange Commission,
(United States)
Appointed: 7 January 2013
Term expires: 30 June 2017
Wei-Guo Zhang
Former Chief Accountant and Director
General, Department of International
Affairs at the China Securities
Regulatory Commission,
(Peoples Republic of China)
Appointed: 1 July 2007
Second term expires: 30 June 2017
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Group
Established Board
by the
chair?
Board?
Agenda
Form of
Member Composition
set by representation selection
Board,
group
or both
Accounting
Standards
Advisory
Forum
Yes
Capital
Markets
Advisory
Committee
No
No
Both
Individuals
Group
International
users of
financial
statements
Consultative
groups for
major projects
Yes
Yes
Board
Individuals
Trustees
with
public
search
Technical
sector
experts
Emerging
Economies
Group
Yes
Yes
Both
Both
Group
Emerging
economies
Financial
Crisis Advisory
Group
[concluded
its work]
Yes
No
Group
Individuals
Yes
Both
Delegates
Trustees International
standardsetters
Group
Established Board
by the
chair?
Board?
Agenda
Form of
Member Composition
set by representation selection
Board,
group
or both
Global
Preparers
Forum
No
No
Both
Individuals
SME
Implementation
Group
Yes
Yes
Group
Individuals
Board/
FASB
Individuals
Board
and
FASB
Preparers,
auditors
and users
of financial
statements
Board
Individuals
Board
Preparers
and auditors
Transition
Resource
Group for
Revenue
Recognition
Transition
Resource
Group for
Impairment
of Financial
Instruments
Yes
Co(jointly with chaired
FASB)
by
Board
and
FASB
ViceChairs
Yes
Yes
Group
International
preparers
Trustees International
with
area experts
public
search
Trustees International
with
cross-sector
public
search
...continued
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2
3
h
ttp://www.oecd.org/corporate/mne/statistics.htm
F oreign Portfolio Holdings of U.S. Securities as of June 30, 2014, U.S. Department
of the Treasury, April 2015. http://ticdata.treasury.gov/Publish/shl2014r.
pdf. And U.S. Portfolio Holdings of Foreign Securities as of December 31,
2014 (preliminary data), U.S. Department of the Treasury, retrieved
December 2015. http://ticdata.treasury.gov/Publish/shcprelim.html
T he Case for Global Accounting Standards: Arguments and Evidence. Ann Tarca.
http://go.ifrs.org/Case-for-Global-Accounting-Standards
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rustees of the IFRS Foundation. Report of the Trustees Strategy Review 2011
IFRSs as the Global Standards: Setting a Strategy for the Foundations Second Decade.
February 2012.
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Afghanistan
Albania
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? IFRS Standards
are required by law. This covers all new and amended IFRS Standards.
There is no need to incorporate individual new or amended Standards
into law or regulations.
IFRS endorsement
Which standards do companies follow? Because Albania has applied
for membership in the EU, Albania follows IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards. Albanian
banks have not used the optional temporary modification of IAS 39
Financial Instruments: Recognition and Measurement permitted by the EU.
Modifications to IFRS Standards: While Albania follows IFRS Standards
as adopted by the EU, the EUs modification of IAS 39 has no effect in
Albania.
Endorsement process for new or amended Standards? None. However,
the NACA, assisted by the World Bank and the IFRS Foundation, is
working on a project to develop an adoption/endorsement process.
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Angola
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: There is currently no stock exchange in Angola.
Financial institutions: IFRS Standards are required for the financial
statements of all banks and other financial institutions regulated by the
National Bank of Angola effective from 1 January 2016.
Separate company financial statements: IFRS Standards are required for
banks and other financial institutions.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: Currently, the audit
report refers to Angolan GAAP.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? By reference
to IFRS Standards in its regulations, the National Bank of Angola has
adopted IFRS Standards as issued by the Board. This means that all
future new and amended IFRS Standards will automatically be adopted
in Angola without the need for individual endorsement.
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Anguilla
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Anguilla follows the requirements of the Eastern
Caribbean Securities Regulatory Commission (ECSRC). The ECSRC
is the regulatory body for the Eastern Caribbean Securities Market
(ECSM, which is the regional securities market for Anguilla, Antigua
and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St
Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines). ECSRC
regulations require the use of international accounting standards.
Although IFRS Standards are not specifically named in the legislation,
it is generally accepted to be IFRS Standards and all listed companies
follow IFRS Standards.
Banks, insurance companies and other financial institutions: Required
to use IFRS Standards.
Separate company financial statements: IFRS Standards.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Endorsement
is not needed. New or amended Standards are automatically effective
when they are issued by the IASB for companies that use IFRS Standards.
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Argentina
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
IFRS endorsement
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Armenia
Australia
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: For financial institutions
and securities market issuers, the auditors report always refers to IFRS
Standards. For other entities, the auditors report refers either to IFRS
Standards or to IFRS Standards as adopted by the Republic of Armenia.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The Law
on Accounting (2003), as amended in December 2008, requires all
companies in the Republic of Armenia to prepare financial statements
in accordance with IFRS Standards with a sole exception of micro-sized
entities. Moreover, Article 3 of that Law states that IFRS Standards as
required by Law includes future standards and comments adopted
by International Accounting Standards Board and interpretations
thereto. Consequently, endorsement of new or amended Standards is
not required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: Both Australian
Accounting Standards and IFRS Standards.
Modifications to IFRS Standards: Australia has not substantively
modified IFRS Standards as applied by forprofit companies.
Endorsement process for new or amended Standards? IFRS Standards
(including Interpretations) are incorporated into Australian Accounting
Standards and have the force of law for all companies that file financial
statements with a governmental agency. In endorsing IFRS Standards,
the Australian Accounting Standards Board (AASB) issues an Exposure
Draft (ED) incorporating an IASB ED at the same time as the Board
issues its ED. The AASB considers constituents comments in drafting
its comments to the Board. The AASB monitors the development of a
Standard and provides input to staff or Board members as appropriate.
A ballot draft of an Australian Accounting Standard incorporating the
new or amended Standard is sent to AASB members for voting. Once
an Australian Accounting Standard is adopted, it is still subject to
disallowance by Parliament.
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Austria
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, Austria is subject to
the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade in a
regulated securities market. The EU IAS Regulation gives member states
the option to require or permit IFRS Standards as adopted by the EU in
separate company financial statements (statutory accounts) and/or in
the financial statements of companies whose securities do not trade on a
regulated securities market.
Banks and other financial institutions: Those that trade on a
regulated market follow IFRS Standards as adopted by the EU. Others
are permitted to use IFRS Standards as adopted by the EU or national
accounting standards.
Separate company financial statements: These follow Austrian GAAP as
stipulated in the Commercial Code.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
Azerbaijan
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: IFRS Standards are
required for:
credit organisations;
insurance companies;
investment funds;
non-state (private) social funds;
entities with securities traded on the stock exchange;
large commercial organisations (size based on annual revenue,
average number of employees and total assets); and
a commercial organisation (other than a very small one) that has one
or more subsidiaries.
All other commercial organisations (except very small ones) are
permitted to use IFRS Standards or the IFRS for SMEs Standard.
Separate company financial statements: IFRS Standards are required
in the separate financial statements of all companies whose securities
trade in a public market.
IFRS endorsement
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Bahamas
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: Rule 7 of the Public
Accountants (Rules of Professional Conduct) Regulations 1993 (adopted
under the Public Accountants Act 1991) requires compliance with IFRS
Standards unless the Bahamas Institute of Chartered Accountants (BICA)
has specifically excluded any particular Standard. As a matter of practice,
the BICA has never excluded any Standard. Bahamas has always adopted
all IFRS Standards as they are issued and made effective. Consequently,
all listed companies and financial institutions follow IFRS Standards as
issued by the Board.
Separate company financial statements: IFRS Standards.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
Bahrain
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: Article 219 of the
Commercial Companies Law of the Kingdom of Bahrain (Decree Law
No21 of 2001) requires that the auditors report state:
Whether the balance sheet and the profit and loss account
are conforming to the facts, and are prepared according to the
international accounting standards or to the standards approved
by the competent authority; and whether they include all what is
provided for in the law and in the companys articles of association
and honestly and clearly reflect the actual financial position of the
company.
Separate company financial statements: IFRS Standards.
IFRS endorsement
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Bangladesh
Barbados
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the ICAB, which is IFRS Standards as issued by the Board except for a
modification of IAS 39 Financial Instruments: Recognition and Measurement.
The auditors report asserts compliance with: IFRS Standards as
adopted by the ICAB.
Modifications to IFRS Standards: Bangladesh has not adopted IAS 39
in full. Instead, it has adopted the version of IAS 39 that was included
in the 2010 IFRS Red Book. The 2010 IFRS Red Book version of IAS 39
does not include requirements for financial assets because that part
of IAS 39 has been replaced by IFRS 9 Financial Instruments. Bangladesh
has also modified the transitional provisions in several Interpretations,
including IFRIC 4 Determining whether an Arrangement contains a Lease and
IFRIC 12 Service Concession Arrangements.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Any new or
amended IFRS Standards automatically become a requirement in
Barbados without the need for endorsement.
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Belarus
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies financial institutions: IFRS Standards are currently
required for banks and non-banking financial institutions (including
insurance companies) whose securities trade in a public market. IFRS
Standards will be required in the consolidated financial statements of
all other domestic companies whose securities trade in a public market
starting from 2016.
Separate company financial statements: IFRS Standards are currently
required in the separate company financial statements of all banks and
non-banking financial institutions whose securities are publicly traded.
IFRS Standards will be required in the separate financial statements of all
insurance companies from 2016. Separate company financial statements
of other publicly traded companies are prepared in conformity with
applicable laws and regulations instead of IFRS Standards.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Currently, both
the Regulations of the National Bank of the Republic of Belarus and the
Belarusian Accounting and Financial Reporting Act provide for IFRS
implementation without endorsement of individual Standards. However,
Belarus is developing a plan by which Standards will be endorsed by
the Cabinet of Ministers of the Republic of Belarus in co-operation with
the National Bank of the Republic of Belarus. No detailed endorsement
procedure is currently available.
Belgium
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, Belgium is subject
to the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade in a
regulated securities market. The EU IAS Regulation gives member states
the option to require or permit IFRS Standards as adopted by the EU in
separate company financial statements (statutory accounts) and/or in
the financial statements of companies whose securities do not trade on a
regulated securities market.
Banks and other financial institutions: All credit institutions,
insurance companies and investment firms must follow IFRS Standards
as adopted by the EU even if not publicly traded. Mutual funds and
pension funds are permitted to use IFRS Standards as adopted by the EU.
Separate company financial statements: These follow national
standards except for real estate investment companies, whose separate
financial statements must follow IFRS Standards as adopted by the EU.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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Belize
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: There is currently no stock exchange in Belize.
IFRS Standards are required for domestic banks and permitted for all
other companies.
Financial institutions: Chapter 73(1) of the Belize Domestic Bank and
Financial Institutions Act 2012 requires that financial statements and
accounting records must be prepared and maintained in accordance
with International Financial Reporting Standards.
Separate company financial statements: IFRS Standards are required for
domestic banks and permitted for all other companies.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? There is no
endorsement process because Belize has not adopted a particular
accounting framework as its national standards for companies other
than banks. IFRS Standards and the IFRS for SMEs Standard are permitted
without endorsement.
Bermuda
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies other than financial institutions: Bermuda has not
adopted any particular financial reporting framework as its national
accounting standards. As an international financial centre, Bermuda
permits the use of IFRS Standards or national GAAPs. The national
GAAPs of Canada, the United Kingdom and the United States are
commonly used.
Banks and other financial institutions: For banks, trust companies,
investment companies and insurance companies subject to regulation
by the Bermuda Monetary Authority (BMA), the BMA has adopted a
regulatory reporting framework. The BMA would accept IFRS Standards,
Canadian GAAP or US GAAP instead of the statutory reporting
framework.
Separate company financial statements: IFRS Standards are permitted
in the separate financial statements of all companies whose securities
trade in a public market.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Endorsement is
not needed. Companies are simply permitted to use IFRS Standards.
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Bhutan
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies other than financial institutions: Currently, the
Companies Act of Bhutan (2000) requires that companies listed on
the Royal Securities Exchange of Bhutan must present their financial
statements in compliance with a GAAP system. To comply with this
provision, companies are permitted to use IFRS Standards.
In July 2010, the government of Bhutan approved the formation of
the Accounting and Auditing Standards Board of Bhutan (AASBB).
The AASBB has authority to set Bhutanese accounting and auditing
standards in line with international standards. The AASBB has decided
to adopt IFRS Standards in three phases, aiming for full adoption and
compliance by the year 2021. The standards will be called Bhutanese
Accounting Standards (BAS) during the transition period until 2021.
Phase 1 involves adoption of 18 IFRS Standards that companies must
implement by the end of 2015. When fully adopted, IFRS Standards
will be required for listed companies and financial institutions and
permitted for all other companies.
Separate company financial statements: IFRS Standards permitted.
IFRS endorsement
Which standards do companies follow? Once IFRS Standards are
fully adopted by 2021, companies will follow IFRS Standards as issued
by the Board.
The auditors report asserts compliance with: IFRS Standards. During
the transition period prior to 2021, the auditors report will refer to
compliance with BAS.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Currently, there
is no endorsement process.
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Bolivia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Currently, all companies domiciled in Bolivia,
domestic and foreign, must follow Bolivian Accounting Standards to
prepare their statutory financial statements. In addition to the statutory
financial statements:
foreign companies are permitted to prepare supplemental financial
statements using IFRS Standards for the purpose of consolidation if
this is required by their head office; and
Bolivian national companies that are subsidiaries of foreign
companies are permitted to prepare supplementary financial
statements using IFRS Standards for the purpose of consolidation if
this is required by their head office.
The Consejo Tecnico Nacional de Auditoria y Contabilidad (CTNAC, the
National Technical Board of Auditors and Accountants) has approved
a plan that would require IFRS Standards (including the IFRS for SMEs
Standard) as follows:
for companies with public accountability starting in 2015;
for medium-sized companies starting in 2016; and
for small and micro-sized companies starting in 2017.
However, that plan has not yet been approved by the Autoridad de
Fiscalizacin y Control Social de Empresas (AEMP), the Bolivian
government regulatory body.
IFRS endorsement
Which standards do companies follow? National standards.
The auditors report asserts compliance with: National standards.
Modifications to IFRS Standards: Not applicable.
Endorsement process for new or amended Standards? Not applicable.
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Bosnia and
Herzegovina
Botswana
Consolidated
financial
statements
Separate
financial
statements
Listed companies
IFRS Standards
IFRS Standards
Banks
IFRS Standards
IFRS Standards
Insurance companies
IFRS Standards
IFRS Standards
IFRS Standards
IFRS Standards
IFRS Standards
IFRS Standards
IFRS Standards
IFRS Standards
or the IFRS for
SMEs Standard
IFRS Standards
IFRS Standards
or the IFRS for
SMEs Standard
Consolidated
financial
statements are
not required
IFRS Standards
or the IFRS for
SMEs Standard
(but no equity
or cash flow
statements)
IFRS endorsement
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The law requires
application of IFRS Standards as issued by the Board. There is no need to
incorporate individual Standards into law.
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Brazil
Brunei Darussalam
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by
the Board, but some options have been eliminated, for example, the
revaluation of property, plant and equipment under IAS 16 Property, Plant
and Equipment and revaluation of intangible assets under IAS38 Intangible
Assets.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: Brazil modified IFRS Standards to
prohibit early adoption.
Endorsement process for new or amended Standards? The Comit
de Pronunciamentos Contbeis (CPC, the Brazilian Accounting
Pronouncements Committee) approves standards that are identical
to IFRS Standards as issued by the Board. The Comisso de Valores
Mobilirios (CVM, Securities and Exchange Commission of Brazil)
endorses CPC standards for public entities. The Conselho Federal de
Contabilidade (CFC) endorses CPC standards for non-public entities. In
addition, the Brazilian Institute of Independent Auditors (IBRACON) is
the official entity authorised to annually translate and publish the IFRS
Red Book.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The BDASC is
developing a process for endorsement of IFRS Standards. The process will
include public input both at a dialogue session and by an Exposure Draft.
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Bulgaria
Cambodia
Banks and other financial institutions: All must follow IFRS Standards
as adopted by the EU even if not publicly traded.
Separate company financial statements: IFRS Standards as adopted by
the EU.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: The audit report must
state compliance with CIFRS. However, the audit report may also refer to
compliance with IFRS Standards in addition to compliance with CIFRS.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The ministerial
proclamation that originally adopted IFRS Standards is worded so that
all new Standards, amendments and Interpretations are automatically
adopted without any additional adoption or endorsement process.
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Canada
Cayman Islands
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The Canadian
Accounting Standards Board (AcSB) issues its own wraparound exposure
draft for every Exposure Draft and draft Interpretation issued by the
IASB and the IFRS Interpretations Committee. As soon as possible
following the Boards approval of a new or amended Standard, the AcSB
reviews the final steps in the Boards due process, including the review
by the IFRS Foundations Due Process Oversight Committee. It also
considers the responses to its own wraparound exposure draft. The AcSB
then approves the new material by written ballot, translates the text
into French and publishes the English and French texts in the Canadian
Institute of Chartered Accountants (CICA) HandbookAccounting.
IFRS endorsement
Which standards do companies follow? Where IFRS Standards are
used, companies follow IFRS Standards as issued by the Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The regulations
of the Cayman Islands Monetary Authority and the listing requirements
of the Cayman Islands Stock Exchange permit IFRS Standards without
the need for endorsement of individual Standards.
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Chile
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Listed companies and those with 500 or more
shareholders, other than financial institutions, are regulated by the
Superintendencia de Valores y Seguros (SVS). Other corporations may
voluntarily register with (and be regulated by) the SVS; over 200 have
opted to do so. All companies registered with SVS must follow IFRS
Standards.
Financial institutions: Banks and other financial institutions are
regulated by the Superintendent of Banks and Financial Institutions
(SBIF). They must follow the accounting rules issued by the SBIF. The
SBIF has adopted IFRS Standards with two significant modifications:
banks must measure loan loss provisions using an expected loss
approach (with note disclosure of the IAS 39 Financial Instruments:
Recognition and Measurement amount); and
banks are prohibited from using the fair value option in IAS 39.
Separate company financial statements: IFRS Standards required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None with respect to reporting
entities that are not banks or financial institutions. As previously
noted above, there are two modifications for banks and other financial
institutions.
Endorsement process for new or amended Standards? The Colegio de
Contadores de Chile (CCCH) is the recognised accounting standardsetter
under the law. Because the CCCH has adopted IFRS Standards, those
Standards are authoritative under the law. The CCCH periodically
adopts new and amended Standards via a Technical Bulletin.
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China
Note: As Special Administrative Regions of the Peoples Republic
of China, both Hong Kong and Macao adopt their own financial
reporting standards. Accordingly, there are separate jurisdictional
profiles for Hong Kong and Macao.
IFRS endorsement
Which standards do companies follow? National standards.
The auditors report asserts compliance with: National standards.
Modifications to IFRS Standards: Not applicable.
Endorsement process for new or amended Standards? Not applicable.
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Colombia
Costa Rica
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? In order to
incorporate IFRS Standards into the Colombian legal system, the original
text of the Standard must be exposed for public comment by the national
standard-setter and then attached to a series of legal documents issued
by the regulatory authorities. Those documents are then published in an
official newspaper in order to complete the formal adoption process.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The resolutions
of the Colegio adopting IFRS Standards and the IFRS for SMEs Standard
state that any new or amended Standards are automatically adopted in
Costa Rica.
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Croatia
Cyprus
Banks and other financial institutions: All must follow IFRS Standards
as adopted by the EU even if not publicly traded.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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Czech Republic
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Denmark
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standards, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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Dominica
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Dominican Republic
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Endorsement
is not needed. New or amended Standards are automatically effective
when they are issued by the IASB for companies that use IFRS Standards.
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IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: In the process of gradually
implementing IFRS, some Standards were not mandatory prior to 2014.
But starting in 2014 IFRS Standards have been required in full without
modification.
Endorsement process for new or amended Standards? New and
amended IFRS Standards become required when issued by the IASB and
translated into Spanish.
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Ecuador
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: IFRS Standards are
mandatory for listed companies other than financial institutions and
for other companies under control/supervision of the Companies
Supervisory Authority.
Financial institutions: Banks, insurance companies and other
financial institutions that are under the control/supervision of the
Superintendency of Banks and Insurance Companies must use standards
issued by that regulator.
Separate company financial statements: IFRS Standards required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? New and
amended IFRS Standards become requirements automatically under
Resolution No. 2008.11.20 08.G.DSC.010 issued by the Superintendent
of Companies.
Egypt
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: Egypt has not adopted
IFRS Standards. By Decree No. 243/2006 of the Minister of Investment,
in 2006 Egypt adopted 35 national accounting standards known as
Egyptian Accounting Standards (EAS). The EAS was developed taking into
consideration the IFRS Standards that existed in 2005.
Decree No. 243/2006 requires companies to look to IFRS Standards if
there is no comparable EAS.
Separate company financial statements: EAS is required.
IFRS endorsement
Which standards do companies follow? EAS.
The auditors report asserts compliance with: EAS.
Modifications to IFRS Standards: Not applicable.
Endorsement process for new or amended Standards? Not applicable.
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El Salvador
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: IFRS Standards are
required for all listed companies other than banks, insurance
companies and pension funds.
Financial institutions: The bank, insurance and pension regulators
have not adopted IFRS Standards, but they require that the financial
statements of their regulated entities state the main differences
between regulatory GAAP and IFRS Standards.
Separate company financial statements: IFRS Standards are required
(other than financial institutions).
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The Consejo de
Vigilancia de la Profesin de Contadura Pblica y Auditora (CVPCPA) is
the accounting standard-setter recognised under the Commercial Code
of El Salvador. The CVPCPA has adopted IFRS Standards and the IFRS for
SMEs Standard.
Estonia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, Estonia is subject to
the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade in a
regulated securities market. The EU IAS Regulation gives member states
the option to require or permit IFRS Standards as adopted by the EU in
separate company financial statements (statutory accounts) and/or in
the financial statements of companies whose securities do not trade on a
regulated securities market.
Banks and other financial institutions: All must follow IFRS Standards
as adopted by the EU even if not publicly traded. These include credit
institutions, insurance undertakings, financial holding companies,
mixed financial holding companies and investment firms.
Separate company financial statements: IFRS Standards as adopted by the EU.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU modified
some sections of IAS 39 Financial Instruments: Recognition and Measurement.
Endorsement process for new or amended Standards? For each
new or amended IFRS Standard, the European Commission requests
endorsement advice and an effects study from the European Financial
Reporting Advisory Group (EFRAG). During the process EFRAG holds a
number of consultations with interest groups. Based on EFRAGs advice,
the European Commission prepares a draft Endorsement Regulation.
This Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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European Union
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: The IAS Regulation adopted by the EU in 2002
requires application of IFRS Standards as adopted by the EU for the
consolidated financial statements of European companies whose
securities trade in a regulated securities market. The EU IAS Regulation
gives member states the option to require or permit IFRS Standards as
adopted by the EU in separate company financial statements (statutory
accounts) and/or in the financial statements of companies whose
securities do not trade on a regulated securities market.
Banks and other financial institutions: Those whose securities trade
in a regulated market must follow IFRS Standards as adopted by the EU.
Member states prescribe the standards for other financial institutions.
Separate company financial statements: EU member states may permit
or require IFRS Standards or national GAAP. The European Commission
periodically surveys the EU member states regarding use of options for
separate financial statements. The reports of those surveys can be found
here:
http://ec.europa.eu/internal_market/accounting/legal_framework/
ias_regulation/index_en.htm.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU modified
some sections of IAS 39 Financial Instruments: Recognition and Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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Fiji
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: The Fiji Institute of
Accountants (FIA) adopted IFRS Standards for large and/or publicly
accountable entities beginning in January 2007. The terms large and
publicly accountable are defined in the By-Laws of the FIA to be:
public companies, as defined in the Companies Act;
companies that are majority-owned by the government;
banking and financial institutions;
superannuation, insurance and insurance broking entities;
government entities established under their own statute with annual
turnover of at least F$5 million (approximately US$2million);
entities with annual group turnover of at least F$20 million
(approximately US$9 million) or with assets exceeding F$20 million
(approximately US$9 million);
other entities that are publicly accountable (those that have debt or
equity instruments on public issue or have coercive power to tax, rate
or levy to obtain public funds) with annual turnover of at least F$5
million (approximately US$2 million); and
entities with annual turnover of at least F$5 million (approximately
US$2 million) and where any of the previously noted listed entities
have significant influence (through more than 20 per cent ownership),
because equity accounting would be applicable for the parent
company reporting.
Separate company financial statements: IFRS Standards required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? There is no
formal approval process. The FIA has statutory authority to approve
accounting standards. The FIA requires IFRS Standards for large and
publicly accountable entities (as previously noted). New and amended
IFRS Standards automatically become part of the FIA requirement.
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Finland
France
Banks and other financial institutions: All must follow IFRS Standards
as adopted by the EU even if not publicly traded.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU modified
some sections of IAS 39 Financial Instruments: Recognition and Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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Gambia
Georgia
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
IFRS endorsement
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Germany
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Ghana
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
IFRS endorsement
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Greece
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, Greece is subject to
the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade
in a regulated securities market. The EU IAS Regulation gives member
states the option to require or permit IFRS Standards as adopted by the
EU in separate company financial statements (statutory accounts) and/
or in the financial statements of companies whose securities do not
trade on a regulated securities market. Application of IFRS Standards
as adopted by the EU is required for subsidiaries of listed entities and
financial institutions that, in total, represent more than 5 per cent of
the consolidated turnover or the consolidated assets or the consolidated
results.
Banks and other financial institutions: Application of IFRS Standards
as adopted by the EU are required for both the consolidated and separate
financial statements of banks and other financial institutions (as defined in
Law 3601/2007) whether or not their securities trade in a regulated market.
Separate company financial statements: Application of IFRS Standards
as adopted by the EU are required for the separate company financial
statements of Greek companies whose securities trade in a regulated market.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Grenada
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Grenada follows the requirements of the Eastern
Caribbean Securities Regulatory Commission (ECSRC). The ECSRC
is the regulatory body for the Eastern Caribbean Securities Market
(ECSM, which is the regional securities market for Anguilla, Antigua
and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St
Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines). ECSRC
regulations require the use of international accounting standards.
Although IFRS Standards are not specifically named in the legislation,
it is generally accepted to be IFRS Standards, and all listed companies
follow IFRS Standards.
Banks, insurance companies, and other financial institutions:
Required to use IFRS Standards.
Separate company financial statements: These follow IFRS Standards.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Endorsement
is not needed. New or amended Standards are automatically effective
when they are issued by the IASB for companies that use IFRS Standards.
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Guatemala
Guinea-Bissau
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
IFRS endorsement
Which standards do companies follow? SYSCOA or other national
standards.
The auditors report asserts compliance with: National standards.
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Guyana
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Honduras
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: IFRS Standards are required for all companies listed
on the Guyana Stock Exchange. The IFRS Standards requirement was
adopted both by the Institute of Chartered Accountants of Guyana
(ICAG) and by the rules of the Guyana Stock Exchange.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards or the
IFRS for SMEs Standard, as applicable.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The adoption
of IFRS Standards by the ICAG covers all new and amended Standards,
so endorsement of individual new or amended IFRS Standards are not
required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? New and
amended Standards are published in La Gaceta (Official Gazette of the
Republic of Honduras) following review by the Junta Tcnica de Normas
de Contabilidad y de Auditora (JUNTEC, the national professional
accountancy organisation of Honduras).
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Hong Kong
Hungary
IFRS endorsement
Which standards do companies follow? Listed companies use either
HKFRS, virtually identical to IFRS Standards, or IFRS Standards as issued
by the Board. Approximately 250 companies from China are listed on
the Stock Exchange of Hong Kong. Approximately 85 per cent of these
companies use IFRS Standards as issued by the Board or HKFRS; the
others use Chinese accounting standards.
The auditors report asserts compliance with: HKFRS or IFRS Standards
(if the company is incorporated outside Hong Kong and uses IFRS
Standards as issued by the Board).
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? New or amended
IFRS Standards are adopted as HKFRS by the Council of the Hong Kong
Institute of Certified Public Accountants following a comprehensive due
process that invites comments on IFRS Standards and proposals. For the
Hong Kong companies incorporated outside Hong Kong that use IFRS
Standards as issued by the Board, local endorsement of new or amended
Standards is not required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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Iceland
India
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting Advisory
Group (EFRAG). During the process EFRAG holds a number of consultations
with interest groups. Based on EFRAGs advice, the European Commission
prepares a draft Endorsement Regulation. This Regulation is adopted
only after a favourable vote of the Accounting Regulatory Committee and
favourable opinions of the European Parliament and the Council of the
European Union and publication in the Official Journal of the European Union.
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IFRS endorsement
Which standards do companies follow? Ind AS, which are substantially
converged with IFRS Standards.
The auditors report asserts compliance with: Ind AS.
Modifications to IFRS Standards: Ind AS are IFRS Standards as issued by
the Board with some modifications, including changes of terminology;
elimination of options; addition of disclosures; elimination of disclosures
that are considered to be contradictory to local law; elimination of other
disclosures; addition of presentation requirements; addition of (and,
in some cases, deletion of) examples; and modifications of principles
for recognising assets, liabilities, income and expense. Some of those
modifications are mandatory, and some are optional. Each individual
Ind AS contains an Appendix that explains the modifications.
Endorsement process for new or amended Standards? ICAI prepares
a exposure draft of the Ind AS on the basis of IFRS Standards. After
considering comments, the proposed final Ind AS is approved by the
ICAI Council and then adopted by the Ministry of Corporate Affairs via
public notification.
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Indonesia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Iraq
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Currently there are two tiers of GAAP that are established in Indonesia:
Tier 1 SAK, for listed companies and other entities with significant
public accountability; and
Tier 2 SAK ETAP, for entities with no significant public
accountability.
Separate company financial statements: Indonesian Financial Reporting
Standards.
IFRS endorsement
Which standards do companies follow? Indonesian Financial
Reporting Standards.
The auditors report asserts compliance with: Indonesian Financial
Reporting Standards.
private banks;
private shared companies; and
consultancy companies.
Other companies whose securities are not publicly traded must use
either full IFRS Standards or the IFRS for SMEs Standard.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Iraqi Company
Law (Number 21, year 1997, phase 133) requires all companies to apply
IFRS Standards. This applies to all new and amended Standards as well
as Standards in force when the law was adopted.
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Ireland
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, Ireland is subject to
the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade in a
regulated securities market. The EU IAS Regulation gives member states
the option to require or permit IFRS Standards as adopted by the EU in
separate company financial statements (statutory accounts) and/or in
the financial statements of companies whose securities do not trade on a
regulated securities market. In Ireland:
issuers on the Enterprise Securities Market (ESM, an equity market
designed for small to medium sized growth companies that is not
an EU regulated securities market) that are incorporated in the
Republic of Ireland or elsewhere in the EEA and that are parent
companies are required by ESM rules to apply IFRS Standards as
adopted by the EU; and
issuers on the Global Exchange Market (GEM, a specialist debt market)
that are incorporated in the Republic of Ireland or elsewhere in the
EEA are permitted by GEM rules to apply IFRS Standards as adopted
by the EU.
Banks and other financial institutions: They must follow IFRS Standards
as adopted by the EU if they trade on a regulated market or ESM.
Separate company financial statements: IFRS Standards as adopted by
the EU are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by the EU.
The auditors report asserts compliance with: IFRS Standards as adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU modified
some sections of IAS 39 Financial Instruments: Recognition and Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
Israel
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: All domestic companies whose securities trade in
a public market only in Israel are required to use IFRS Standards,
except for banking institutions (listed and unlisted, including credit
card companies). Banking institutions are subject to the reporting
requirements of the Banking Supervision Department of the Bank of
Israel. As such, they are required to apply only some Standards that
are not related to their core banking business. That is, essentially,
banks do not apply the IFRS financial instruments Standards or
pension Standards. Instead, banks are required to follow standards
that are similar to US GAAP in those areas. Domestic companies
whose securities are traded both in Israel and in specified other stock
exchanges (dual listed companies) are allowed to file in Israel financial
statements according to IFRS Standards, IFRS Standards as adopted by
the EU or US GAAP.
Financial institutions: See above.
Separate company financial statements: Separate financial statements
in conformity with IFRS Standards are not required or generally
published. Instead, companies whose securities trade in a public market
release selected data on a separate-company basis in accordance with
specific requirements stated in the Israeli Securities Regulations.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The text of any
new or amended Standards is automatically incorporated into the Israeli
regulations under which IFRS Standards were adopted, and there is no
need for a specific incorporation or endorsement of new or amended
Standards.
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Italy
Jamaica
Listed companies: As a member state of the EU, Italy is subject to the EUs
IAS Regulation adopted in 2002. That Regulation requires application
of IFRS Standards as adopted by the EU for the consolidated financial
statements of European companies whose securities trade in a regulated
securities market. The EU IAS Regulation gives member states the option to
require or permit IFRS Standards as adopted by the EU in separate company
financial statements (statutory accounts) and/or in the financial statements
of companies whose securities do not trade on a regulated securities
market.
Banks and other financial institutions: Banks, financial institutions and
issuers of financial instruments widely distributed among the public are
required to apply IFRS Standards as adopted by the EU in their consolidated
and separate financial statements, even if they do not trade on a regulated
exchange. Insurance companies must apply IFRS Standards as adopted by
the EU only in the consolidated financial statements or, if they have no
subsidiaries, in their separate financial statements.
Separate company financial statements: IFRS Standards as adopted by
the EU are required in the separate financial statements of companies
whose ecurities are traded in a regulated market (see above for
insurance companies).
IFRS endorsement
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Because IFRS
Standards have been adopted by Resolution of the membership of
the ICAJ, it is not necessary to endorse individual new and amended
Standards.
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Japan
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Listed companies may use Japanese Accounting
Standards, Japans Modified International Standards, IFRS Standards
or US GAAP. Voluntary application of IFRS Standards in consolidated
financial statements by listed companies that meet certain criteria has
been permitted since March 2010. In 2013 those criteria were broadened
to permit virtually all listed companies to use IFRS Standards, as
well as unlisted companies that are preparing consolidated financial
statements for listing purposes. As of March 2016, 128 companies
(accounting for 27% of the Tokyo Stock Exchange market capitalisation)
have adopted or plan to adopt IFRS Standards. An additional 213
companies (16% of the TSE market capitalisation) have announced that
they are considering whether to move to IFRS Standards.
Financial institutions: IFRS Standards are permitted.
Separate company financial statements: IFRS Standards are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? IFRS Standards
are adopted by the Commissioner of the Financial Services Agency
through a formal process of endorsement that is prescribed by the
Ordinance on Terminology, Forms and Preparation Methods of
Consolidated Financial Statements.
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Jordan
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: The Jordanian Companies Law, and regulations
issued by the Jordanian Securities Commission, the Central Bank of
Jordan and Jordanian Insurance Commission all require IFRS Standards
for regulated companies under their jurisdiction.
Financial institutions: Financial institutions regulated by the Central
Bank of Jordan and insurance companies regulated by the Jordanian
Insurance Commission must use full IFRS Standards.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: The revaluation model in IAS 16
Property, Plant and Equipment and IAS 38 Intangible Assets and the fair
value through profit or loss model in IAS 40 Investment Property are
not permitted. These options were eliminated by regulators because
active markets did not exist in Jordan for property and intangibles.
Elimination of the options is regarded as temporary and may be
cancelled if the regulators concerns are mitigated in the coming years.
Financial statements nonetheless are in full compliance with IFRS
Standards.
Endorsement process for new or amended Standards? The law and
regulations require the use of IFRS Standards without the need for
endorsement of individual Standards.
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Kenya
Korea (South)
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Standards
become effective on their respective effective dates as issued by the
Board. While the Council of the ICPAK maintains the right to make
changes to Standards, it has not made any modifications to date.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None. South Korea has added some
presentation and disclosure requirements that do not affect the full
compliance with IFRS Standards as issued by the IASB.
Endorsement process for new or amended Standards? The Act on
External Audit of Stock Companies provides the legal basis for IFRS
Standards that are translated by the Korea Accounting Standards
Board (KASB), exposed for public comment and then endorsed by the
government.
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Kosovo
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: There is no stock exchange in Kosovo. Law No.04/L-014
on Accounting, Financial Reporting and Audit requires all business
organisations registered as limited liability companies or shareholder
companies in Kosovo to apply IFRS Standards following approval by the
Kosovo Council for Financial Reporting (KCFR).
Kuwait
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: By Ministerial Decree, all companies that fall under
the purview of the Kuwait Commercial Companies Law and other
institutions are required to use IFRS Standards in the preparation of
financial statements, not only publicly traded companies.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by
the Board and approved by the KCFR. If, for any reason, the KCFR has
not approved a particular Standard (which has not happened), the law
nonetheless permits any business organisation to prepare its financial
statements in conformity with IFRS Standards as issued by the Board if it
informs the KCFR it has done so.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The KCFR
reviews each new and amended Standard after it has been translated
into Albanian by the National Accounting Council of Albania. The KCFR
approves IFRS Standards for use in Kosovo.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Endorsement is
not needed. By Ministerial Decree, new or amended IFRS Standards are
automatically effective when they are issued by the Board for companies
that use IFRS Standards.
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Latvia
Lesotho
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The law
requires the use of IFRS Standards without the need for endorsement of
individual Standards.
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Liechtenstein
Lithuania
IFRS endorsement
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
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Luxembourg
Macao
Banks and other financial institutions: All must follow IFRS Standards
as adopted by the EU if they trade on a regulated market.
Separate company financial statements: IFRS Standards as adopted by
the EU are permitted.
IFRS endorsement
IFRS endorsement
Which standards do companies follow? MAS.
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Macedonia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: The Trade Company Law requires IFRS Standards as
published in the Official Gazette of the Republic of Macedonia for all of the
following:
commercial entities listed on the stock exchange;
large and medium-sized commercial entities;
commercial entities specified by law;
commercial entities performing banking activities and insurance
activities; and
all subsidiaries of the above.
Currently, IFRS Standards issued after 1 January 2009 have not been
translated into Macedonian or published in the Official Gazette. All
other entities are obliged to use the IFRS for SMEs Standard as published
in the Official Gazette.
Financial institutions: IFRS Standards are required for commercial
entities performing banking and insurance activities.
Separate company financial statements: IFRS Standards required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: While Macedonia has not eliminated
options or made modifications, the most recent Standards published in
the Official Gazette are those issued on or before 1 January 2009.
Endorsement process for new or amended Standards? The Minister of
Finance reviews new and amended Standards and publishes them in the
Official Gazette.
Madagascar
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: There is no stock
exchange in Madagascar. Madagascar has not yet adopted IFRS
Standards or the IFRS for SMEs Standard. Unlisted companies follow The
National Accounting Plan PCG2005-Consistent IAS/IFRS. PGC 2005
was developed by the Conseil Suprieur de la Comptabilit (CSC, the
Higher Council of Accounting) in 2005 and there are plans to update
it. The CSC has stated that in developing the PGC 2005 it tried to base
those standards on IFRS as published in 2004. The PGC 2005 permits
any entity to choose to apply full IFRS Standards or the IFRS for SMEs
Standard. Thus, all companies have the choice of PGC2005, full IFRS
Standards or the IFRS for SMEs Standard.
Separate company financial statements: There is no requirement for
groups to prepare consolidated financial statements. IFRS Standards
permitted.
IFRS endorsement
Which standards do companies follow? PGC 2005.
The auditors report asserts compliance with: PGC 2005.
Modifications to IFRS Standards: Not applicable.
Endorsement process for new or amended Standards? Not applicable.
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Malaysia
Maldives
IFRS endorsement
Which standards do companies follow? The MFRS Framework
(identical to IFRS Standards as issued by the Board).
The auditors report asserts compliance with: MFRS. However, financial
statements that comply with the MFRS Framework are required to
include an explicit and unreserved statement of compliance with IFRS
Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The Financial
Reporting Act (FRA) 1997 empowers the MASB to issue accounting
standards for application in Malaysia. Under the FRA, financial
statements that are prepared or lodged with the Central Bank, Securities
Commission or Registrar of Companies are required to comply with the
standards issued by the MASB. Consequently, the accounting standards
issued by the MASB are given the force of law. The MASB must make
a public announcement when a new or amended MFRS, which is
equivalent to a new or amended IFRS Standards, is issued so as to give
the standard the legal status of MASB Approved Accounting Standards
under the FRA.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? New and
amended Standards are automatically required by the various laws and
regulations adopting IFRS Standards and the IFRS for SMEs Standard.
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Malta
Mauritius
Listed companies: The Companies Act 2001 requires all companies with
annual revenue over 50 million rupees (approximately US$1.5 million)
to use IFRS Standards. However, if the company is not a public interest
entity (PIE), it is allowed to use the IFRS for SMEs Standard. PIEs are:
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The law
requires the use of IFRS Standards without the need for endorsement of
individual Standards.
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Mexico
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: IFRS Standards were adopted by the Comisin
Nacional Bancaria y de Valores (CNBV, the National Banking and
Securities Commission of Mexico) for listed companies other than
financial institutions and insurance companies effective for annual
reporting periods beginning on or after 1 January 2012. This applies
both to entities that prepare consolidated financial statements and
to entities that are not required to prepare consolidated financial
statements because they do not have subsidiaries.
Moldova
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: IFRS Standards are
required for all public interest entities even if their securities do not
trade in a public market. Public interest entities are financial entities,
investment funds, insurance companies, private pension funds and
entities whose shares are traded on the stock exchange.
Separate company financial statements: IFRS Standards are required in
the separate financial statements of public interest entities (see above).
IFRS endorsement
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? No
endorsement process has been established beyond the initial CNBV
regulation requiring IFRS Standards. Mexican companies that use
IFRSStandards apply the official English version of IFRS Standards.
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Mongolia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: The Accounting Law approved by the Parliament in
1993 requires all entities to prepare their financial reports in accordance
with IAS. However, in practice, it has been only since late 2000 that listed
companies began using IFRS Standards in full.
Most reports of audits done by international auditing firms state that
public companies are preparing their financial statements in conformity
with IFRS Standards. Most SMEs prepare the financial statements under
the Mongolian Accounting Regulation that was approved by the Minister
of Finance instead of IFRS Standards. The IFRS for SMEs Standard has not
been adopted in Mongolia.
Financial institutions: IFRS Standards are required.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards. Dual
reporting of conformity with both IFRS Standards and the Accounting
Regulation is common.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? New and
amended Standards are covered by the Accounting Law approved by the
Parliament in 1993, which requires all entities to prepare their financial
reports in accordance with IFRS Standards. Individual endorsement is
not needed.
Montserrat
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Montserrat follows the requirements of the Eastern
Caribbean Securities Regulatory Commission (ECSRC). The ECSRC
is the regulatory body for the Eastern Caribbean Securities Market
(ECSM, which is the regional securities market for Anguilla, Antigua
and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St
Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines). ECSRC
regulations require the use of international accounting standards.
Although IFRS Standards are not specifically named in the legislation,
it is generally accepted to be IFRS Standards, and all listed companies
follow IFRS Standards.
Banks, insurance companies and other financial institutions: IFRS
Standards.
Separate company financial statements: IFRS Standards.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Endorsement
is not needed. New or amended Standards are automatically effective
when they are issued for companies that use IFRS Standards.
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Myanmar
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: The Yangon Stock
Exchange (YSX) was launched in December 2015. Website: http://ysx-mm.
com/en/ Additionally, an over the counter market has developed for the
shares of some companies; those companies are regarded as publicly
accountable. Companies liste on YSX and companies trading in the overthe-counter market are required to use MFRSs, which are identical to the
2010 versions of IFRS Standards.
Financial institutions: MFRS (2010 versions of IFRS Standards) required.
Separate company financial statements: MFRS (2010 versions of IFRS
Standards) required.
IFRS endorsement
Which standards do companies follow? The 2010 version of IFRS
Standards as issued by the Board, adopted as MFRS.
The auditors report asserts compliance with: MFRS.
Modifications to IFRS Standards: None. However, IFRS Standards were
adopted as of 2010 and have not been updated since.
Endorsement process for new or amended Standards? The Council has
a policy to consider new and amended Standards within one year after
they are issued. The Council seeks the views of others, including the
Myanmar Institute of Chartered Public Accountants. Approved MFRSs
are published in the Official Gazette.
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Nepal
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: IFRS Standards adopted as Nepal Financial
Reporting Standards (NFRS) are required. NFRS is being implemented
for listed companies and government-owned business entities (state
owned enterprises) over a three-year period starting in 2014. Full
implementation of NFRS will be completed in 2016.
Financial institutions: IFRS Standards adopted as NFRS are required.
Separate company financial statements: IFRS Standards adopted as NFRS
are required.
IFRS endorsement
Which standards do companies follow? NFRS, which are identical to
IFRS Standards as issued by the Board.
The auditors report asserts compliance with: NFRS.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The Preface
to NFRS states: When IASB revises amends or withdraws an IFRS
Standard (including Interpretations), such revision, amendments, and
withdrawals shall accordingly be treated as effected with immediate
revision, amendments, and withdrawals in NFRS by ASB as well to the
extent not in conflict with existing National laws.
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Netherlands
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, the Netherlands is
subject to the EUs IAS Regulation adopted in 2002. That Regulation
requires application of IFRS Standards as adopted by the EU for the
consolidated financial statements of European companies whose
securities trade in a regulated securities market. The EU IAS Regulation
gives member states the option to require or permit IFRS Standards as
adopted by the EU in separate company financial statements (statutory
accounts) and/or in the financial statements of companies whose
securities do not trade on a regulated securities market.
Banks, and other financial institutions: All must follow IFRS Standards
as adopted by the EU if they trade on a regulated market.
Separate company financial statements: IFRS Standards as adopted by
the EU are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
New Zealand
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: New Zealand has adopted New Zealand equivalents
to IFRS Standards, NZ-IFRS, for all for-profit entities that have public
accountability and for all large for-profit public sector entities. NZ-IFRS is
identical to IFRS Standards as issued by the Board with three additional
New Zealand-specific standards. The three New Zealand-specific
standards deal with
summary financial statements;
prospective financial statements; and
a small number of New Zealand specific disclosure requirements (in
addition to those in IFRS Standards).
If other for-profit entities are required by law to prepare GAAP financial
reports, GAAP in this instance is IFRS Standards with reduced disclosure
concessions under New Zealands reduced disclosure regime (NZ-IFRS-RDR).
Financial institutions: Entities with public accountability and therefore
required to use NZ-IFRS include all registered banks, deposit takers,
insurance providers and superannuation schemes and any other entity
that holds assets in a fiduciary capacity as part of its primary business.
Separate company financial statements: NZ-IFRS required.
IFRS endorsement
Which standards do companies follow? NZ-IFRS, which is IFRS Standards
as issued by the Board with three additional New Zealand-specific
standards.
The auditors report asserts compliance with: IFRS Standards and NZIFRS.
Modifications to IFRS Standards: None. It should be noted that New
Zealand has adopted a second tier of standards (NZ-IFRS-RDR) available
for adoption by entities that do not have public accountability and forprofit public sector entities that are not large. NZ-IFRS-RDR has the same
recognition, measurement and presentation requirements as NZ-IFRS
but with significant disclosure concessions. The auditors report asserts
compliance with NZ-IFRS-RDR and not with IFRS Standards.
Endorsement process for new or amended Standards? Accounting
standards issued by the External Reporting board or its sub-board, the New
Zealand Accounting Standards Board (NZASB), are Regulations under the
law. Standards become authoritative when the NZASB completes its due
process, places a notice of its issue in the Gazette, and submits a copy to
Parliament in accordance with the Legislation Act 2012.
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Nicaragua
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: There is no accounting law in Nicaragua. The
Colegio de Contadores Pblicos de Nicaragua (CCPN) has adopted
both IFRS Standards and the IFRS for SMEs Standard as professional
requirements in Nicaragua.
The Superintendencia de Bancos y Otras Instituciones Financieras
(SIBOIF) (Superintendency of Banks and Other Financial Institutions)
requires all listed companies to use full IFRS Standards or US GAAP
in financial statements for investors. The tax authority permits both
full IFRS Standards and the IFRS for SMEs Standard as a valid basis of
accounting for tax purposes, with a reconciliation to Nicaraguan tax
law when the tax law differs from IFRS Standards or the IFRS for SMEs
Standard.
Financial institutions: The SIBOIF has developed accounting manuals
for banks, insurance companies and bonded warehouses. These are
prudential accounting standards based partly on IFRS Standards, but
there are some important differences from IFRS Standards. The SIBOIF
also requires all applicants for loans from financial institutions to
prepare financial statements using either full IFRS Standards or the IFRS
for SMEs Standard.
Separate company financial statements: IFRS Standards or US GAAP
required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? When law
or regulation requires or permits IFRS Standards or the IFRS for SMEs
Standard, all new or amended Standards are automatically included.
Niger
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Niger is a member of the West African Economic and
Monetary Union (UEMOA). UEMOA members have adopted the Systme
comptable ouest africain (SYSCOA, the West African Accounting System)
since 1 January 1998. Niger is also a member of the Organisation pour
lHarmonisation en Afrique du Droit des Affaires (OHADA). OHADA has
also adopted SYSCOA. SYSCOA has significant differences from IFRS
Standards. In 2009, the Council of Ministers of UEMOA created the
Conseil Comptable Ouest Africain (CCOA, the West African Accounting
Council). The CCOA is charged with making recommendations
regarding accounting standards. The CCOA has announced a plan to
converge SYSCOA toward IFRS Standards starting in 2014.
Financial institutions: Banks in the UEMOA member countries do not
follow SYSCOA but instead follow accounting guidelines established
under UEMOA banking legislation. There are differences from IFRS
Standards.
Separate company financial statements: These follow SYSCOA.
IFRS endorsement
Which standards do companies follow? SYSCOA or other national
standards.
The auditors report asserts compliance with: National standards.
Modifications to IFRS Standards: Not applicable.
Endorsement process for new or amended Standards? Not applicable.
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Nigeria
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: IFRS Standards are is required for the financial
statements of all public interest entities (PIEs), which includes:
all companies that trade on both the main board or the Alternative
Securities Market (ASeM) of the Nigerian Stock Exchange;
some unquoted companies classified as PIEs; and
governments, government organisations, and not-for-profit entities
that are required by law to file returns with regulatory authorities.
Financial institutions: IFRS Standards are required for all banks,
insurance companies, and other entities that hold assets in fiduciary
capacity for a broad group of outsiders.
Separate company financial statements: IFRS Standards are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The law requires use
of IFRS Standards without need for endorsement of individual Standards.
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Norway
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EEA, Norway is subject
to the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade in a
regulated securities market. The EU IAS Regulation gives member states
the option to require or permit IFRS Standards as adopted by the EU in
separate company financial statements (statutory accounts) and/or in
the financial statements of companies whose securities do not trade on a
regulated securities market.
Banks and other financial institutions: All must follow IFRS Standards
as adopted by the EU if they trade on a regulated market.
Separate company financial statements: IFRS Standards as adopted
by the EU (a) required in the separate company financial statements of
companies whose securities trade in a regulated market but that have
no subsidiaries and (b) permitted in the separate company financial
statements of other publicly traded companies.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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Oman
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: The Executive Regulation of the Capital Market
Law (Royal Decree 80/1998) states that every issuer (listed companies)
shall prepare financial statements in accordance with IFRS Standards.
The Code of Corporate governance also requires companies to prepare
financial statements in accordance with IFRS Standards.
Financial institutions: IFRS Standards are required.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? IFRS Standards
are required by law, so new or amended Standards do not have to be
individually endorsed.
Pakistan
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Domestic companies whose securities trade in a
public market are required to use IFRS Standards as adopted in Pakistan.
Some important Standards have not been adopted for companies
asserting compliance with IFRS Standards as adopted in Pakistan. And
Pakistan has not applied IFRS 1 First-time Adoption of International Financial
Reporting Standards.
Financial institutions: IFRS Standards required.
Separate company financial statements: IFRS Standards permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted in
Pakistan.
The auditors report asserts compliance with: IFRS Standards as adopted in
Pakistan.
Modifications to IFRS Standards: Pakistan has made the following
modifications:
it has not adopted IFRS 1.
IAS 39 Financial Instruments: Recognition and Measurement, IAS 40
Investment Property, and IFRS 7 Financial Instruments: Disclosures have not
been adopted for banks and other financial institutions regulated
by the State Bank of Pakistan (SBP). The SBP has prescribed its own
criteria for recognition and measurement of financial instruments for
such financial entities. Those Standards do apply to other companies
not regulated by the SBP.
it has not adopted IFRIC 4 Determining whether an Arrangement contains
a Lease.
it has not adopted IFRIC 12 Service Concession Arrangements.
Endorsement process for new or amended Standards? IFRS Standards
are adopted by the Securities and Exchange Commission of Pakistan
(SECP) following consideration and recommendation by the Institute of
Chartered Accountants of Pakistan (ICAP). When the SECP has published
the standard in the Official Gazette, it has the authority of the law.
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Panama
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: All domestic (Panamanian) companies listed on the
stock exchange are required to use either IFRS Standards or US GAAP.
Financial institutions: Banks registered with the Superintendence
of the Stock Market must use either full IFRS Standards or US GAAP.
Bank holding companies began reporting their consolidated financial
statements under full IFRS Standards starting in 2014.
Separate company financial statements: IFRS Standards or US GAAP
required except for the individual financial statements of banks, which
refer to IFRS Standards as modified by banking prudential rules.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None, except for the individual
financial statements of banks. In the case of banks, provisions for
loan losses and repossessed assets are measured according to rules
issued by the Superintendence of Banks of Panama and not according
to IFRS Standards. However, starting in 2014 bank holding companies
were required to establish provisions according to IFRS Standards.
Consequently companies with bank subsidiaries now prepare
consolidated financial statements with their provisions and reserves
reconverted to IFRS Standards. The bank subsidiary will continue to
prepare its separate company financial statements according to IFRS
Standards as modified by banking prudential rules for regulatory
purposes.
Endorsement process for new or amended Standards? The securities
and banking laws require IFRS Standards without the need to endorse
individual new or revised Standards.
Paraguay
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: IFRS Standards are are permitted, but very few
companies use them. Most use national accounting standards developed
by the Ministerio de Hacienda. The Comisin Nacional de Valores
(national securities commission) has adoption of IFRS Standards
under study in its project Proyecto de Reglamentacin de los Aspectos
Contables.
Financial institutions: Banks and other financial institutions generally
use national accounting standards. The Central Bank has stated its
intention to adopt IFRS Standards as part of its strategic plan.
Separate company financial statements: IFRS Standards permitted, but
very few companies use them.
IFRS endorsement
Which standards do companies follow? The few companies that use
IFRS Standards follow IFRS Standards as issued by the Board.
The auditors report asserts compliance with: The auditors report
refers to accounting standards accepted in Paraguay.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? A small number
of large companies in Paraguay have voluntarily adopted IFRS Standards.
They use IFRS Standards as issued by the Board. This means they must
use new and amended Standards when issued and effective without
local endorsement.
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Peru
Philippines
IFRS endorsement
Which standards do companies follow? Listed companies other than
banks, insurance companies, and pension funds follow IFRS Standards
as issued by the Board. Banks, insurance companies, and pension funds,
as well as unlisted companies that use IFRS Standards, follow IFRS
Standards as endorsed by the CNC.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? By Resolution
053-2013-EF/30 (11 September 2013), the CNC endorsed all IFRS Standards
as issued by the Board through 2013 without modification. It must
be recognised that when applying IFRS Standards, companies apply
some national legal and fiscal requirements that might not be entirely
consistent with IFRS Standards, such as the useful lives of depreciable
assets specified in tax legislation.
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IFRS endorsement
Which standards do companies follow? PFRS, which is IFRS Standards
with several limited modifications.
The auditors report asserts compliance with: PFRS.
Modifications to IFRS Standards: The limited modifications made to
IFRS Standards in adopting them as PFRS relate to revenue recognition
by real estate companies and some guidance for insurance (pre-need)
companies, banks, mining companies and recipients of government
grants that is not entirely consistent with IFRS Standards.
Endorsement process for new or amended Standards? The process
includes the FRSC, the Board of Accountancy and the Philippine
Securities and Exchange Commission.
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Poland
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: As a member state of the
EU, Poland is subject to the EUs IAS Regulation adopted in 2002. That
Regulation requires application of IFRS Standards as adopted by the EU
for the consolidated financial statements of European companies whose
securities trade in a regulated securities market. The EU IAS Regulation
gives member states the option to require or permit IFRS Standards as
adopted by the EU in separate company financial statements (statutory
accounts) and/or in the financial statements of companies whose
securities do not trade on a regulated securities market.
Banks and other financial institutions: Poland requires IFRS Standards
as adopted by the EU for the consolidated financial statements of all banks
including those whose securities do not trade in a regulated market.
Separate company financial statements: IFRS Standards as adopted by the
EU are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting Advisory
Group (EFRAG). During the process EFRAG holds a number of consultations
with interest groups. Based on EFRAGs advice, the European Commission
prepares a draft Endorsement Regulation. This Regulation is adopted
only after a favourable vote of the Accounting Regulatory Committee and
favourable opinions of the European Parliament and the Council of the
European Union and publication in the Official Journal of the European Union.
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Portugal
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, Portugal is subject
to the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade in a
regulated securities market. The EU IAS Regulation gives member states
the option to require or permit IFRS Standards as adopted by the EU in
separate company financial statements (statutory accounts) and/or in
the financial statements of companies whose securities do not trade on a
regulated securities market. Portugal permits IFRS Standards as adopted
by the EU in the financial statements of the subsidiaries of companies
required to use IFRS Standards as adopted by the EU.
Banks and other financial institutions: IFRS Standards as adopted
by the EU are required in the consolidated financial statements of all
credit institutions and other financial institutions whether or not their
securities trade in a regulated market.
Separate company financial statements: IFRS Standards as adopted by
the EU are required for a company whose securities trade in a regulated
market but that does not prepare consolidated financial statements
because it has no subsidiaries. IFRS Standards as adopted by the EU
are permitted in the separate financial statements of all public other
companies.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). Based on EFRAGs advice, the European
Commission prepares a draft Endorsement Regulation. This Regulation
is adopted only after a favourable vote of the Accounting Regulatory
Committee and favourable opinions of the European Parliament and the
Council of the European Union and publication in the Official Journal of
the European Union.
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Qatar
Romania
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? IFRS Standards
are required by law, so new or amended Standards do not have to be
individually endorsed.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
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Russia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Rwanda
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: IFRS Standards were endorsed for use in Russia at the
end of 2011 and became mandatory in consolidated financial statements
from 2012, in accordance with the Federal Law 208-FZ On Consolidated
Financial Statements. IFRS Standards are required for the consolidated
financial statements of all companies whose securities are publicly
traded, as well as for credit institutions and insurance companies, with
two exceptions: application of IFRS Standards are deferred until 2015 for
companies that currently report using US GAAP and for companies that
have only debt securities trading in public capital markets.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The first stage
of the endorsement process is a technical assessment of the Standard
made by the National Accounting Standards Board of Russia (NASB),
which is the independent organisation designated by the Ministry of
Finance. The second stage of the endorsement process is administrative:
the issuance of the regulation on endorsement of the Standard by the
Ministry of Finance in co-operation with the Russian Securities and
Exchange Commission and the Central Bank of Russia as well as with
the Russian Ministry of Justice.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
Modifications to IFRS Standards: None.
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Saint Lucia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Saint Lucia follows the requirements of the Eastern
Caribbean Securities Regulatory Commission (ECSRC). The ECSRC
is the regulatory body for the Eastern Caribbean Securities Market
(ECSM, which is the regional securities market for Anguilla, Antigua
and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St
Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines). ECSRC
regulations require the use of international accounting standards.
Although IFRS Standards are not specifically named in the legislation,
it is generally accepted to be IFRS Standards, and all listed companies
follow IFRS Standards.
Banks, insurance companies and other financial institutions: Required
to use IFRS Standards.
Separate company financial statements: These follow IFRS Standards.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Endorsement
is not needed. New or amended Standards are automatically effective
when they are issued for companies that use IFRS Standards.
Saudi Arabia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: With the exception of banks and insurance
companies, all listed and unlisted companies in Saudi Arabia currently
follow accounting standards issued by the Saudi Organization for
Certified Public Accountants (SOCPA).
The SOCPA has approved an IFRS Standards convergence plan by which
listed entities other than banks and insurance companies would be
required, starting in 2017, to report under SOCPA standards that will be
IFRS Standards, possibly with some modifications. IFRS Standards as
issued by the Board would be modified in three possible ways:
adding more disclosure requirements;
removing optional treatments; and
amending the requirements that contradict Shariah or local
law, taking in consideration level of technical and professional
preparedness in the Kingdom of Saudi Arabia.
Financial institutions: The Saudi Arabian Monetary Authority (SAMA,
which is the Saudi Arabian central bank) requires banks and insurance
companies in Saudi Arabia to report under IFRS Standards.
Separate company financial statements: IFRS Standards permitted. The
separate company financial statements of publicly traded companies, if
prepared, often use IFRS Standards but they are not available to the public.
IFRS endorsement
Which standards do companies follow? Banks and insurance
companies follow IFRS Standards as issued by the Board.
The auditors report asserts compliance with: In the case of banks, the
audit report refers to conformity with IFRS Standards and Accounting
Standards for Financial Institutions issued by the SAMA, the provisions
of the Regulations for Companies, the Banking Control Law in the
Kingdom of Saudi Arabia and the Banks By-Laws. In the case of
insurance companies, the audit report refers to conformity with IFRS
Standards and Regulations for Companies and the entitys Articles of
Association.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The law requires
use of IFRS Standards without need for endorsement of individual
Standards.
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Serbia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: IFRS Standards are
required for all listed companies, large legal entities (as defined by law)
and some other entities that are required by law to publish consolidated
financial statements. Large legal entities include (regardless of size):
banks and other financial organisations;
insurance companies;
financial leasing lessors;
voluntary pension funds;
voluntary pension funds management companies;
investment funds;
investment fund management companies;
stock exchanges;
securities brokerages; and
factoring companies.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
Sierra Leone
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: IFRS Standards are required for listed companies.
Financial institutions: IFRS Standards are required for banks and
insurance companies.
Separate company financial statements: IFRS Standards are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Sierra Leones
adoption of IFRS Standards includes all new and amended Standards.
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Singapore
Slovakia
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: SFRS (IFRS Standards if
they are used).
Modifications to IFRS Standards: SFRS is aligned with currently
effective IFRS Standards except as follows:
IFRIC 2 Members Shares in Co-operative Entities and Similar Instruments has
not yet been adopted;
some changes were made to certain exemptions in IFRS 10 Consolidated
Financial Statements;
additional guidance has been issued for applying the SFRS
Consolidated Financial Statements equivalent of IFRIC 15 Agreements for the
Construction of Real Estate; and
several modifications have been made to the transition provisions
and effective dates of IFRS Standards.
Endorsement process for new or amended Standards? Not applicable.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). Based on EFRAGs advice, the European
Commission prepares a draft Endorsement Regulation. This Regulation
is adopted only after a favourable vote of the Accounting Regulatory
Committee and favourable opinions of the European Parliament and the
Council of the European Union and publication in the Official Journal of
the European Union.
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Slovenia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, Slovenia is subject
to the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade in a
regulated securities market. The EU IAS Regulation gives member states
the option to require or permit IFRS Standards as adopted by the EU in
separate company financial statements (statutory accounts) and/or in
the financial statements of companies whose securities do not trade on a
regulated securities market.
Banks and other financial institutions: Slovenia requires IFRS
Standards as adopted by the EU in both the consolidated and separate
financial statements of banks and insurance companies whether or not
their securities trade in a regulated market.
Separate company financial statements: IFRS Standards as adopted by
the EU are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). Based on EFRAGs advice, the European
Commission prepares a draft Endorsement Regulation. This Regulation
is adopted only after a favourable vote of the Accounting Regulatory
Committee and favourable opinions of the European Parliament and the
Council of the European Union and publication in the Official Journal of
the European Union.
South Africa
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: IFRS Standards are required by the Companies Act
Regulations and Johannesburg Stock Exchange Listing Requirements.
Financial institutions: The Companies Act Regulations prescribe
either IFRS Standards or the IFRS for SMEs Standard depending on each
individual companys public interest score. The public interest score
is based on points that are allocated to the number of employees,
third party liabilities, turnover and shareholders. A company can
always choose IFRS Standards even if only required to use the IFRS for
SMEs Standard. In addition, those SMEs that have a public interest
score under 100 points and whose financial statements are internally
compiled can use their own accounting policies if they are not required
to comply with any other financial reporting standards.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Since May 2011,
the Companies Act Regulations refer directly to IFRS as issued from
time to time by the IASB or its successor body. Therefore, new and
amended Standards are automatically authoritative under law.
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Spain
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, Spain is subject to
the EUs IAS Regulation adopted in 2002. That Regulation requires
application of IFRS Standards as adopted by the EU for the consolidated
financial statements of European companies whose securities trade
in a regulated securities market. The EU IAS Regulation gives member
states the option to require or permit IFRS Standards as adopted by
the EU in separate company financial statements (statutory accounts)
and/or in the financial statements of companies whose securities do
not trade on a regulated securities market. IFRS Standards as adopted
by the EU are required in the consolidated financial statements of all
groups that include at least one group company whose securities trade
in a regulated market, even if the parents securities do not trade in a
regulated market.
Banks and other financial institutions: All must follow IFRS Standards
as adopted by the EU if they trade on a regulated market.
Separate company financial statements: Spanish National Accounting
Standards are required in the separate company financial statements of
all companies, both publicly traded and private.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
Sri Lanka
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: All domestic companies whose securities trade
in a public market are required to use Sri Lanka Financial Reporting
Standards (SLFRS), which are substantially converged with IFRS
Standards. Differences from IFRS Standards are noted below.
Financial institutions: SLFRS required.
Separate company financial statements: SLFRS required.
IFRS endorsement
Which standards do companies follow? SLFRS, which are substantially
converged with IFRS Standards.
The auditors report asserts compliance with: SLFRS.
Modifications to IFRS Standards: SLFRS reflect the following
modifications to IFRS Standards:
in adopting IFRS 7 Financial Instruments: Disclosures, Sri Lanka did
not require comparative information for periods beginning before
1January 2013. IFRS 7 would require such information.
Sri Lanka has adopted an alternative treatment with respect to some
right-of-use land on lease.
Endorsement process for new or amended Standards? When the IASB
issues a final Standard or Interpretation, the Institute of Chartered
Accountants of Sri Lanka (CA Sri Lanka) reviews the Standard and
related technical materials. In a few cases this review has resulted
in modification or deferral of the Standard for use in Sri Lanka.
Thereafter, it is translated into Sinhala and Tamil and published in
the Extra Ordinary Gazette as required by the Accounting and Auditing
Standards Act No. 15 of 1995 in Sri Lanka. Once gazetted, it becomes
legally authoritative.
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IFRS endorsement
IFRS endorsement
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Suriname
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: The laws of Suriname and the regulations of the
Suriname Stock Exchange neither require nor prohibit IFRS Standards or
any other specific accounting framework.
Financial institutions: IFRS Standards are permitted.
Separate company financial statements: IFRS Standards are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? There is no
endorsement process, because IFRS Standards are is neither required nor
explicitly permitted nor prohibited.
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Swaziland
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: Chapter XI Section 247
of the Companies Act 2009 requires application of IFRS Standards.
However, the jurisdiction acknowledges that IFRS Standards are
sometimes not followed, and there are no sanctions for companies not
applying IFRS Standards.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The Companies
Act refers to IFRS Standards. Thus, new or amended Standards are
automatically adopted.
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Sweden
Switzerland
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards adopted
by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new or
amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
Main
standard
(Note 1)
Total
IFRS
Standards
118
7
16
8
149
Swiss
GAAP
FER
2
51
0
5
58
US GAAP
10
0
0
0
10
Bank law
0
21
0
0
21
Total
130
79
16
13
238
Note 1: the main standard is the segment of the Exchange intended for
companies seeking capital from international investors.
Note 2: the domestic standard is the segment of the Exchange intended
for companies seeking capital only from Swiss domestic investors.
Financial institutions: IFRS Standards are permitted.
Separate company financial statements: Statutory separate company
financial statements must be prepared in accordance with the rules
prescribed by the Swiss Code of Obligations; those statements are the
authoritative basis for the distribution of dividends, for tax purposes
and for determining insolvency.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? For listed
companies that choose IFRS Standards, Standards and amendments are
automatically adopted as and when issued by the Board.
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Taiwan
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Domestic listed companies have a choice of using (a)
IFRS Standards as endorsed by the Financial Supervisory Commission
(FSC) or (b)with approval of the FSC, IFRS Standards as issued by the
Board.
Financial institutions: IFRS Standards are required for all financial
institutions except for credit co-operatives, credit card companies and
insurance intermediaries where IFRS Standards are permitted, but not
required.
Separate company financial statements: IFRS Standards are required for
separate financial statements.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board or IFRS Standards as endorsed by the FSC.
The auditors report asserts compliance with: For those entities that
use IFRS Standards as endorsed by the FSC, the auditors report refers
to IFRS Standards as endorsed by the FSC. For those entities that use
IFRS Standards as issued by the Board, the auditors report refers to IFRS
Standards.
Modifications to IFRS Standards: Some options have been eliminated
and the mandatory effective dates of some Standards have been deferred
beyond the effective dates adopted by the Board. The eliminated options
are revaluation of property, plant and equipment, intangible assets,
and exploration and evaluation assets of companies in the extractive
industries. Further, some conditions are imposed on using the deemed
cost exemption described in IFRS 1 First-time Adoption of International
Financial Standards.
Tanzania
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: IFRS Standards required.
In 2004, the National Board of Accountants and Auditors of Tanzania
adopted IFRS Standards as issued by the Board in full via a technical
pronouncement. Future Standards, amendments, and Interpretations
issued by the Board are also covered by that pronouncement.
Financial institutions: IFRS Standards are required.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? IFRS Standards
have the force of law because the use is incorporated into regulations of
various governmental regulatory bodies, including the Bank of Tanzania
(BoT), Tanzania Insurance Regulatory Authority (TIRA), Dar es Salaam
Stock Exchange (DSE), Capital Market and Securities Authority (CMSA)
and the technical pronouncement of the National Board of Accountants
and Auditors of Tanzania on the adoption of IFRS Standards.
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Thailand
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
IFRS endorsement
Which standards do companies follow? TAS.
The auditors report asserts compliance with: TAS.
Modifications to IFRS Standards: Not applicable.
Endorsement process for new or amended Standards? Not applicable.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
large entities would apply the IFRS for SMEs Standard; and
medium-sized and small entities would apply Thai Accounting Standard
for NPAEs.
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Turkey
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: Turkey has adopted IFRS
Standards for the financial statements of all public interest entities.
This includes companies whose securities are traded in a regulated
market and many categories of financial institutions including banks,
leaving companies, financing companies, insurance companies,
investment firms, pension funds, and pension companies.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: Turkish Accounting
Standards (TAS), which are defined by law as accounting standards
published in full compliance with IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Endorsement
of individual Standards is not required because IFRS Standards are
required by law.
Uganda
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies and financial institutions: The Institute of Certified
Public Accountants of Uganda (ICPAU) has designated certain entities as
being publicly accountable and requires them to use full IFRS Standards.
Publicly accountable entities include, but are not limited to:
entities whose debt or equity instruments are traded in a public
market (a domestic or foreign stock exchange or an over-the-counter
market, including local and regional markets), or are in the process of
issuing such instruments for trading in a public market;
entities that hold assets in a fiduciary capacity for a broad group of
outsiders as one of its primary businesses;
public organisations that are owned in whole or in part by the State or
that are otherwise controlled directly or indirectly by the State; and
private organisations in which the State has a non-controlling equity
interest.
Separate company financial statements: IFRS Standards are required.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Officially, all
amendments or new Standards and Interpretations are automatically
applicable as and when they are issued by the Board. However, the
ICPAU Council maintains the right to make modifications to Standards if
needed. To date the ICPAU Council has not made any modifications.
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Ukraine
United Arab
Emirates
Listed companies: There are several public securities markets in the UAE:
the National Association of Securities Dealer Automated Quotation
system of Dubai requires listed companies to use IFRS Standards.
the listing rules of Dubai Financial Market PJSC do not require
a specific accounting framework to be used. IFRS Standards are
permitted and used by most listed companies. Some financial
institutions use Financial Accounting Standards issued by the
Accounting and Auditing Organization for Islamic Financial
Institutions (AAOIFI).
the Dubai Financial Services Authority (DFSA) requires listed
companies to prepare financial statements in accordance with IFRS
Standards or other standards acceptable to the DFSA. The DFSA
had permitted financial institutions to use the AAOIFI standards.
However, in December 2012, the DFSA prohibited AAOIFI Standards.
Companies that had applied AAOIFI standards had a two year period
to comply with IFRS Standards.
listed companies in Abu Dhabi use IFRS Standards.
Financial institutions: IFRS Standards are required.
Separate company financial statements: There is no requirement to
prepare separate company financial statements.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? Under the terms
of a Waiver of Copyright Agreement with the IFRS Foundation, the
Ministry of Finance translates the Standards into Ukrainian and posts
them on its website. When that occurs, a new or amended Standard is
endorsed for use in Ukraine.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards in
nearly all cases. In some rare cases in which the central bank imposes
additional loan loss provision requirements on a particular financial
institution, there would be modifications to the IFRS opinion.
Modifications to IFRS Standards: None. However:
in practice, IAS 19 Employee Benefits is not applied to certain end-ofservice benefits because of the costs and lack of actuarial data and
resources. While this practice is not consistent with IAS 19, the
treatment is accepted in practice because the effect is not material.
the law requires directors fees to be recognised directly in equity.
While this practice is not consistent with IAS 19, the treatment is
accepted in practice because the effect is not material.
Endorsement process for new or amended Standards? When a new or
amended Standard is issued, it becomes effective automatically with the
effective date specified in it.
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United Kingdom
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: As a member state of the EU, the United Kingdom
is subject to the EUs IAS Regulation adopted in 2002. That Regulation
requires application of IFRS Standards as adopted by the EU for the
consolidated financial statements of European companies whose
securities trade in a regulated securities market. The EU IAS Regulation
gives member states the option to require or permit IFRS Standards as
adopted by the EU in separate company financial statements (statutory
accounts) and/or in the financial statements of companies whose
securities do not trade on a regulated securities market. Most issuers
on the AIM (a UK market for trading securities that is not regulated
market) are required by the AIM Rules to apply IFRS Standards as
adopted by the EU.
Banks and other financial institutions: All must follow IFRS Standards
as adopted by the EU if they trade on a regulated market or the AIM.
Separate company financial statements: IFRS Standards as adopted by
the EU are permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as adopted by
the EU.
The auditors report asserts compliance with: IFRS Standards as
adopted by the EU.
Modifications to IFRS Standards: In adopting IFRS Standards, the EU
modified some sections of IAS 39 Financial Instruments: Recognition and
Measurement.
Endorsement process for new or amended Standards? For each new
or amended Standard, the European Commission requests endorsement
advice and an effects study from the European Financial Reporting
Advisory Group (EFRAG). During the process EFRAG holds a number
of consultations with interest groups. Based on EFRAGs advice, the
European Commission prepares a draft Endorsement Regulation. This
Regulation is adopted only after a favourable vote of the Accounting
Regulatory Committee and favourable opinions of the European
Parliament and the Council of the European Union and publication in
the Official Journal of the European Union.
United States
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Domestic companies whose securities trade in public
markets must use US GAAP as prescribed in standards issued by the
Financial Accounting Standards Board (FASB). Foreign companies whose
securities trade in public markets are permitted to use US GAAP, IFRS
Standards as issued by the Board or their national GAAP. If they use IFRS
Standards, a reconciliation to US GAAP amounts is not required. If they
use a national GAAP, a reconciliation to US GAAP amounts is required.
Nearly 500 foreign issuers in the United States use IFRS Standards.
Financial institutions: US GAAP is required.
Separate company financial statements: If separate company financial
statements are prepared, US GAAP is required.
IFRS endorsement
Which standards do companies follow? Domestic US companies use US
GAAP. Foreign issuers are permitted to use IFRS Standards as issued by
the Board, and approximately 500 such companies do so.
The auditors report asserts compliance with: For foreign issuers
using IFRS Standards, the auditors report asserts compliance with IFRS
Standards.
Modifications to IFRS Standards: Not applicable.
Endorsement process for new or amended Standards? Not applicable.
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Uruguay
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Companies other than banks and financial
institutions, autonomous entities and decentralised services are
required to use accounting standards adopted by national decree.
Starting in 2012, for companies whose securities trade in a public
market, this is full IFRS Standards as translated into Spanish.
Financial institutions: Banks and other financial institutions started
using IFRS Standards in their 2014 financial statements.
Separate company financial statements: National accounting standards
are required. IFRS Standards are not permitted.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: For companies whose securities are
publicly traded and for financial institutions, there are no modifications
to IFRS Standards. For other companies that use IFRS Standards, a
national decree adopted IFRS Standards as issued through July 2007,
with some modifications. Those modifications relate to:
financial statement formats that differ from IAS 1 Presentation of
Financial Statements;
a requirement for general price-level adjusted financial statements
even if the hyperinflation test of 100 per cent over three years in
IAS29 Financial Reporting in Hyperinflationary Economies is not met; and
accounting for investments by the equity method in separate financial
statements.
Endorsement process for new or amended Standards? New and
amended IFRS Standards are adopted by national decree and regulations
of the Central Bank.
Uzbekistan
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Listed companies: Listed companies other than banks follow accounting
standards set by the Ministry of Finance for companies. The Uzbekistan
Central Bank requires all banks, including listed banks, to use IFRS
Standards with some modifications (see below).
Financial institutions: IFRS Standards required by the Central Bank,
with some modifications (see below).
Separate company financial statements: IFRS Standards are not
permitted. Accounting standards set by the Ministry of Finance are used.
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board, with some modifications.
The auditors report asserts compliance with: For banks, the audit
report states conformity with IFRS Standards. For all other companies,
the audit report states conformity with Uzbek National Accounting
Standards.
Modifications to IFRS Standards: Under the Central Bank regulations
adopting IFRS Standards for banks, property, plant and equipment
must be accounted for using the revaluation model and not the costdepreciation-impairment model. In applying the revaluation model,
property, plant and equipment is remeasured based on indexes issued
by the government on an annual basis. Further, in applying IFRS
Standards, banks follow certain prudential accounting requirements
of the Central Bank that differ from IFRS Standards. Examples of the
differences include:
valuation of investments held in bonds and equities;
measurement of loan loss impairment;
recognition and valuation of loan fees;
deferred income tax;
lease accounting; and
consolidation.
Endorsement process for new or amended Standards? IFRS Standards
are not incorporated into law. However, they have been adopted for
banks in regulations issued by the Central Bank.
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Venezuela
Vietnam
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board through 2008, with the modification described above.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: As explained above, Venezuela
modified IAS29 to require price-level adjusted financial statements
when the rate of inflation is 10 per cent or more, even if the
hyperinflation test of 100 per cent over three years in IAS 29 is not met.
Endorsement process for new or amended Standards? There is
currently no process for endorsing new or amended Standards issued
after 2008.
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IFRS endorsement
Which standards do companies follow? VAS. Note that some
Vietnamese companies prepare IFRS financial statements for the
purpose of reporting to foreign investors. However, those IFRS financial
statements are supplementary financial statements published in
addition tonot instead offinancial statements prepared using VAS.
The VAS financial statements are the statutory and primary financial
statements.
The auditors report asserts compliance with: VAS.
Modifications to IFRS Standards: Not applicable, because IFRS Standards
have not been adopted.
Endorsement process for new or amended Standards? Not applicable,
because IFRS Standards have not been adopted.
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Yemen
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
Zambia
Accounting standards required for publicly accountable entities
(listed companies and financial institutions)
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by the
Board.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? The law permits
the use of IFRS Standards without need for endorsement of individual
Standards.
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(Advert)
Zimbabwe
Bound volumes of
IFRS Standards
IFRS endorsement
Which standards do companies follow? IFRS Standards as issued by
the Board. However, amendments and new Standards are sometimes
not formally adopted on a timely basis. Nonetheless, new or amended
Standards are normally followed in practice even without formal
adoption.
The auditors report asserts compliance with: IFRS Standards.
Modifications to IFRS Standards: None.
Endorsement process for new or amended Standards? To incorporate
amendments to existing Standards and adopt new Standards, the
reporting regulations are updated by statutory instruments issued by
the Minister of Justice, Legal and Parliamentary Affairs from time to
time.
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IFRS Standards
IFRS 1 First-time Adoption of International Financial Reporting Standards
IFRS 1 requires an entity that is adopting IFRS Standards for the first
time to prepare a complete set of financial statements for its first IFRS
reporting period and for the immediately preceding year.
The entity uses the same accounting policies throughout all periods
presented in its first IFRS financial statements. Those accounting
policies shall comply with each Standard effective at the end of its first
IFRS reporting period. IFRS 1 provides limited exemptions from the
requirement to restate prior periods in specified areas in which the cost
of complying with them would be likely to exceed the benefits to users
of financial statements. IFRS 1 also prohibits retrospective application of
IFRS Standards in some areas, particularly when retrospective application
would require judgements by management about past conditions after
the outcome of a particular transaction is already known.
The Standard requires disclosures that explain how the transition from
previous GAAP to IFRS Standards affected the entitys reported financial
position, financial performance and cash flows.
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Financial assets
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Financial liabilities
An entity classifies all financial liabilities as subsequently measured at
amortised cost using the effective interest method, except for:
financial liabilities at fair value through profit or loss. Such liabilities,
including derivatives that are liabilities, are subsequently measured at
fair value.
financial liabilities that arise when a transfer of a financial asset does
not qualify for derecognition or when the continuing involvement
approach applies.
financial guarantee contracts (for which special accounting is
prescribed).
commitments to provide a loan at a below-market interest rate (for
which special accounting is prescribed).
contingent consideration recognised by an acquirer in a business
combination to which IFRS 3 applies.
However, an entity may, at initial recognition, irrevocably designate a
financial liability as measured at fair value through profit or loss when
permitted or when doing so results in more relevant information.
After initial recognition, an entity cannot reclassify any financial liability.
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Impairment
Impairment of financial assets is recognised in stages:
Stage 1as soon as a financial instrument is originated or purchased,
12-month expected credit losses are recognised in profit or loss and
a loss allowance is established. This serves as a proxy for the initial
expectations of credit losses. For financial assets, interest revenue is
calculated on the gross carrying amount (ie without adjustment for
expected credit losses).
Stage 2if the credit risk increases significantly and the resulting credit
quality is not considered to be low credit risk, full lifetime expected
credit losses are recognised in profit or loss. Lifetime expected credit
losses are only recognised if the credit risk increases significantly from
when the entity originates or purchases the financial instrument. The
calculation of interest revenue is the same as for Stage 1.
Stage 3if the credit risk of a financial asset increases to the point that
it is considered credit-impaired, interest revenue is calculated based on
the amortised cost (ie the gross carrying amount adjusted for the loss
allowance). Financial assets in this stage will generally be individually
assessed. Lifetime expected credit losses are recognised on these
financial assets.
Hedge accounting
The objective of hedge accounting is to represent, in the financial
statements, the effect of an entitys risk management activities that
use financial instruments to manage exposures arising from particular
risks that could affect profit or loss or other comprehensive income. This
approach aims to convey the context of hedging instruments for which
hedge accounting is applied in order to allow insight into their purpose
and effect.
Under IFRS 9, hedge accounting is aligned with an entitys risk
management activities. Risk components of both financial and nonfinancial items qualify for hedge accounting. Rebalancing (modifying)
a hedging relationship after initial designation does not necessarily
terminate hedge accounting.
Hedge accounting is optional. An entity applying hedge accounting
designates a hedging relationship between a hedging instrument and
a hedged item. For hedging relationships that meet the qualifying
criteria in IFRS 9, an entity accounts for the gain or loss on the hedging
instrument and the hedged item in accordance with the special hedge
accounting provisions of IFRS 9.
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requires an entity (the parent) that controls one or more other entities
(subsidiaries) to present consolidated financial statements;
defines the principle of control, and establishes control as the basis for
consolidation;
sets out how to apply the principle of control to identify whether an
investor controls an investee and therefore must consolidate the investee;
sets out the accounting requirements for the preparation of
consolidated financial statements; and
defines an investment entity and sets out an exception to consolidating
particular subsidiaries of an investment entity.
Consolidated financial statements are the financial statements of a
group in which the assets, liabilities, equity, income, expenses and cash
flows of the parent and its subsidiaries are presented as those of a single
economic entity.
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IFRS 16 Leases
IFRS 16 is effective for annual reporting periods beginning on or after 1
January 2019, with earlier application permitted (as long as IFRS 15 is also
applied).
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IAS 2 Inventories
IAS 2 provides guidance for determining the cost of inventories and
the subsequent recognition of the cost as an expense, including any
write-down to net realisable value. It also provides guidance on the cost
formulas that are used to assign costs to inventories. Inventories are
measured at the lower of cost and net realisable value. Net realisable value
is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make
the sale. The cost of inventories includes all costs of purchase, costs of
conversion and other costs incurred in bringing the inventories to their
present location and condition. The cost of inventories is assigned by:
specific identification of cost for items of inventory that are
individually significant; and
the first-in, first-out or weighted average cost formula for large
quantities of individually insignificant items.
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IAS 17 Leases
Will be superseded by IFRS 16.
IAS 17 classifies leases into two types:
a finance lease if it transfers substantially all the risks and rewards
incidental to ownership; and
an operating lease if it does not transfer substantially all the risks and
rewards incidental to ownership.
IAS 17 prescribes lessee and lessor accounting policies for the two types of
leases, as well as disclosures.
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IAS 18 Revenue
Will be superseded by IFRS 15.
IAS 18 addresses when to recognise and how to measure revenue. Revenue
is the gross inflow of economic benefits during the period arising in the
course of the ordinary activities of an entity when those inflows result in
increases in equity, other than increases relating to contributions from
equity participants. IAS 18 applies to accounting for revenue arising from
the following transactions and events:
the sale of goods;
the rendering of services; and
the use by others of entity assets yielding interest, royalties and dividends.
Revenue is recognised when it is probable that future economic benefits
will flow to the entity and those benefits can be measured reliably. IAS18
identifies the circumstances in which these criteria will be met and,
therefore, revenue will be recognised. It also provides practical guidance
on the application of these criteria. Revenue is measured at the fair value
of the consideration received or receivable.
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Termination benefits
Termination benefits are employee benefits provided in exchange for
the termination of an employees employment. An entity recognises
a liability and expense for termination benefits at the earlier of the
following dates:
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a statement that shows the net assets available for benefits; the
actuarial present value of promised retirement benefits, distinguishing
between vested benefits and non-vested benefits; and the resulting
excess or deficit; or
a statement of net assets available for benefits including either a
note disclosing the actuarial present value of promised vested and
non-vested retirement benefits or a reference to this information in an
accompanying actuarial report.
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Provisions
A provision is a liability of uncertain timing or amount. A liability may be
a legal obligation or a constructive obligation. A constructive obligation
arises from the entitys actions, through which it has indicated to others
that it will accept certain responsibilities, and as a result has created
an expectation that it will discharge those responsibilities. Examples
of provisions may include: warranty obligations; legal or constructive
obligations to clean up contaminated land or restore facilities; and
obligations caused by a retailers policy to refund customers.
A provision is measured at the amount that the entity would rationally
pay to settle the obligation at the end of the reporting period or to
transfer it to a third party at that time. Risks and uncertainties are
taken into account in the measurement of a provision. A provision is
discounted to its present value.
IAS 37 elaborates on the application of the recognition and measurement
requirements for three specific cases:
future operating lossesa provision cannot be recognised because
there is no obligation at the end of the reporting period;
an onerous contract gives rise to a provision; and
a provision for restructuring costs is recognised only when the entity
has a constructive obligation because the main features of the detailed
restructuring plan have been announced to those affected by it.
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Measurement
A financial asset or financial liability is measured initially at fair
value. Subsequent measurement depends on the category of financial
instrument. Some categories are measured at amortised cost, and some
at fair value. In limited circumstances other measurement bases apply,
for example, certain financial guarantee contracts.
The following are measured at amortised cost:
held to maturitynon-derivative financial assets that the entity has the
positive intention and ability to hold to maturity;
loans and receivablesnon-derivative financial assets with fixed or
determinable payments that are not quoted in an active market; and
financial liabilities that are not carried at fair value through profit or
loss or otherwise required to be measured in accordance with another
measurement basis.
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IAS 41 Agriculture
IAS 41 prescribes the accounting treatment, financial statement presentation,
and disclosures related to agricultural activity. Agricultural activity is the
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The IFRS Standard for Small and Medium-sized Entities (IFRS for
SMEs Standard)
The IFRS for SMEs Standard is a small (250-page) Standard that is tailored for
small companies. It focuses on the information needs of lenders, creditors,
and other users of SME financial statements who are primarily interested
in information about cash flows, liquidity and solvency. And it takes into
account the costs to SMEs and the capabilities of SMEs to prepare financial
information. While based on the principles in full IFRS Standards, the IFRS
for SMEs Standard is stand-alone. It is organised by topic. The IFRS for SMEs
Standard reflects five types of simplifications from full IFRS Standards:
some topics in full IFRS Standards are omitted because they are not
relevant to typical SMEs;
some accounting policy options in full IFRS Standards are not allowed
because a more simplified method is available to SMEs;
many of the recognition and measurement principles that are in full
IFRS Standards have been simplified;
substantially fewer disclosures are required; and
the text of full IFRS Standards has been redrafted in plain English for
easier understandability and translation.
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IFRS quiz
The IFRS Foundation is making the entire set of 220 Q&As available
to accounting educators and trainers who use this Pocket Guide as a
textbook. For further information, please email ppacter@ifrs.org.
The quiz is provided as a convenience for interested parties. Completion of the quiz should not be considered as any form of certification of
participants by the IFRS Foundation.
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http://go.ifrs.org/Use-around-the-world
IFRS Standards
http://go.ifrs.org/Unaccompanied-Standards
http://go.ifrs.org/IFRS-for-SMEs
http://go.ifrs.org/IASB-work-plan
Meetings calendar
http://go.ifrs.org/Meetings-Calendar
IFRS Foundation
Constitution
http://go.ifrs.org/IFRS-Foundation-Constitution
http://go.ifrs.org/Due-Process-Handbook
IFRS Foundation
http://go.ifrs.org/IFRS-Foundation
IASB members
http://go.ifrs.org/IASB-members
Accounting Standards
Advisory Forum
http://go.ifrs.org/ASAF
http://go.ifrs.org/IFRS-Advisory-Council
http://shop.ifrs.org/
http://go.ifrs.org/IFRS-Research-Centre
Conferences and
workshops
http://go.ifrs.org/Conferences-and-workshops
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Contact us
IFRS Foundation and IASB
headquarters
30 Cannon Street
London EC4M 6XH
United Kingdom
Phone: +44 (0)20 7246 6410
Fax: +44 (0)20 7246 6411
Email: info@ifrs.org
Asia-Oceania office
Media enquiries
Investor liaison
Website enquiries
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The author
Paul Pacter
Paul Pacter was a member of the Board from 20102012. He is now a
consultant to the Board. In that capacity he manages a project to assess
progress towards adoption of IFRS Standards in individual jurisdictions
throughout the world.
Prior to serving on the Board, Paul held two concurrent positions:
Director in the Global IFRS Office of Deloitte Touche Tohmatsu in Hong
Kong (20002010).
Director of Standards for Small and Medium-Sized Entities (SMEs) at
the Board (20032010). In that capacity he helped the Board develop
an accounting standard that reduces the financial reporting burden
on SMEs.
He worked for the IASBs predecessor, the International Accounting
Standards Committee, from 19942000, managing projects on
financial instruments, interim financial reporting, segment reporting,
discontinued operations, extractive industries, agriculture and electronic
financial reporting.
Previously, Paul worked for the FASB for 16 years, and, for seven years,
was Commissioner of Finance of the City of Stamford, Connecticut. Paul
was Vice-Chairman of the Advisory Council to the US Governmental
Accounting Standards Board (GASB) (19841989) and a member of the
GASBs pensions task force and the FASBs consolidation task force.
He is co-author of two university textbooks and has published over
100 professional monographs and articles. He received his PhD from
Michigan State University and is a Certified Public Accountant. He has
taught in several MBA programmes for working business managers.
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